Gold Hits New High, Welcome $3200!
Gold rose to a new record above $3,200 an ounce as concerns about the impact of tariffs on the global economy drove investors to safety.
Bullion rose as much as 1.3% in early Asian trade on Friday. It surpassed a previous record set on Thursday, and has closed more than 3% higher for several days in a row.
Gold’s safe-haven status has been underscored this week, with President Donald Trump’s fluctuating messaging on his tariff agenda triggering panic selling in stocks, bonds and the U.S. dollar, as fears of a global recession hit Wall Street. Risks and uncertainty remain even after a 90-day pause on higher levies that have hit dozens of trading partners, with duties on all Chinese imports now at least 145%.
There is growing skepticism that trade talks will be concluded in a timely manner, although White House Economic Council Director Kevin Hassett said the U.S. is “very advanced” in its discussions with economic partners.
Gold’s more than a fifth-year rally has also been fueled by hopes for Federal Reserve monetary easing and central bank purchases. Data on Thursday showed underlying U.S. inflation cooled broadly in March, with traders now pricing in expectations for three interest-rate cuts in the remainder of the year, with a fourth possible. Lower interest rates typically benefit gold because it doesn’t pay interest.
“We remain fairly positive on gold,” Dominic Schnider, head of commodities and currencies for Asia Pacific at UBS Global Wealth Management, said on Bloomberg Television. “The next step is, at some point, the Fed steps in — and that gives gold the next step.” Spot gold rose 1.2% to $3,215.73 an ounce as of 8:43 a.m. in Singapore, a weekly gain of nearly 6%. The Bloomberg Dollar Spot Index fell for a fourth day. Silver and platinum rose, while palladium was little changed.
Source: Bloomberg
