Gold prices soar to all-time high over trade war concerns
Gold prices surged to a record high on Friday, as investors flocked to the safe-haven asset amid fears of a global trade war triggered by U.S. President Donald Trump's latest tariffs.
Spot gold climbed 0.6% to $3,074.43 an ounce as of 02:41 p.m. EDT (1839 GMT) after hitting its eighteenth record high this year at $3,086.70 earlier in the session. Bullion is up 1.7% this week and is on track for a fourth straight weekly gain.
U.S. gold futures settled 0.8% higher at $3,114.30.
"It continues to be the safe-haven demand on ramped-up concerns about tariffs, trade and ongoing geopolitical uncertainty as well," that is supporting gold, said Peter Grant, vice president and senior metals strategist at Zaner Metals.
The Fed has held interest rates steady so far this year after three rate cuts in 2024, but hinted at a potential half-percentage point in rate cuts later in the year.
The market is currently pricing 63 bps of Fed rate cuts by the year-end, starting in July.
Markets are now bracing for Trump's plans for reciprocal tariffs, which he intends to lay out on April 2.
Trump's policies are perceived as inflationary, posing a risk to economic growth and escalating trade tensions, analysts say.
Spot silver fell 1.4% to $33.93 an ounce, platinum eased 0.7% to $979.10, and palladium was down 0.3% to $972.13. All three were set for weekly gains.
Source: Reuters
