Gold Set for Weekly Gain as US Tariff Spree Fuels Haven Demand
Gold was on track for a weekly gain, with traders seeking havens after new US tariffs whipsawed markets and fueled uncertainty about the economic outlook.
Bullion edged higher Friday to trade around $2,920 an ounce, a 2.2% increase for the week so far. Concerns have mounted over US President Donald Trump’s moves to implement the largest tariff increases in a century, which have sparked retaliation from some nations and kept Wall Street on edge.
Economists are largely anticipating the levies will lead to higher prices for consumers and slower growth — posing a challenge for the Federal Reserve’s dual mandate to foster price stability and maximum employment. Lower rates tend to benefit the precious metal because it doesn’t pay interest.
Still, Trump eased some concerns this week by exempting Mexican and Canadian goods covered by the North American trade agreement from his 25% tariffs, offering reprieves to America’s biggest trading partners.
Meanwhile, China’s central bank expanded its gold reserves for a fourth month in February. Looking ahead, traders will parse nonfarm payrolls data coming Friday for any further signs of a slowing labor market, which would boost the odds of more Fed rate cuts.
Spot gold was 0.3% higher at $2,920.51 an ounce as of 11:20 a.m. in London. The Bloomberg Dollar Spot Index fell 0.3%. Silver fell, palladium rose and platinum was little changed.
Source : Bloomberg
