Gold Holds Near Record as Growing Trade War Fears Rattle Markets
Gold held near a record high as concerns about the potential impacts of US President Donald Trump’s tariffs supported demand from haven buyers.
Bullion traded about $10 below Thursday’s all-time high of $3,057.49 an ounce, putting it on track for a third weekly gain. A fresh bout of instability has gripped markets amid mounting worries about an escalation in the US-led trade war. The precious metal has benefited as the White House prepares to announce a fresh wave of tariffs on April 2, though the exact scope isn’t clear.
Gold has climbed 16% this year in a rally that’s seen it hit 15 all-time highs in 2025, extending last year’s strong gains as investors seek safety. Geopolitical conflicts in the Middle East and Ukraine have also bolstered the metal’s appeal. Several major banks have raised their price targets for bullion in recent weeks, with Macquarie Group forecasting it could rise as high as $3,500 an ounce.
US sentiment remains fragile, even as reports on Thursday showed existing home sales topped estimates, while initial jobless claims were in line with expectations — a sign of a healthy labor market. That’s had investors considering the path ahead for monetary easing by the Federal Reserve, after policymakers on Wednesday kept interest rates on hold and flagged projections for both slower growth and higher inflation this year.
Bond traders remain confident that the central bank is still on track to cut rates further in 2025. Lower borrowing costs typically boost non-interest paying bullion.
Spot gold was little changed at $3,046.97 an ounce as of 8:04 a.m. in Singapore. The Bloomberg Dollar Spot Index was steady, after rising 0.3% on Thursday. Silver dipped, platinum was flat, and palladium edged up.
Source : Bloomberg
