Gold ‘Best Place to Be’ as Tariff Turmoil Sparks Climb to Record
Gold rose to a record above $3,200 an ounce as concerns about the impact of tariffs on the global economy boosted bullion’s appeal as a haven for investors.
Prices gained as much as 1.9% to $3,237.89 on Friday, eclipsing the previous all-time high posted Thursday. Prices headed for a weekly increase of about 6%.
Gold’s haven status has been underlined this week, with President Donald Trump’s flip-flopping on tariffs sparking frantic selloffs for US stocks, bonds and the dollar, as fears of a worldwide recession engulfed Wall Street.
Risks and uncertainty persisted even after his 90-day tariff-hike pause for most trade partners, with duties on all Chinese imports now at least 145%. In response, China on Friday ratcheted up tariffs on US goods to 125%, while calling the administration’s actions a “joke” and saying it no longer considers them worth matching.
“Gold is the best place to be in the market now,” said Liu Yuxuan, a Shanghai-based precious metal researcher at Guotai Jun’an Futures Co. “The unprecedented trade tension has deepened the distrust of US dollar, intensifying the demand for” other safety assets, she added.
There’s increasing skepticism that trade talks before the next 90-day deadline will be wrapped up in a timely manner, despite the White House Economic Council Director Kevin Hassett saying the US is “well advanced” in its discussions with economic partners.
Gold’s rally of more than a fifth this year has also been boosted by central bank buying and hopes for more Federal Reserve monetary easing. On Thursday, data showed underlying US inflation cooled broadly in March, with traders now pricing in expectations for three interest-rate cuts over the remainder of the year, with a chance of a fourth. Lower rates typically benefit bullion as it pays no interest.
Spot gold was up 1.4% to $3,222.16 an ounce as of 12:09 p.m. in London. The Bloomberg Dollar Spot Index fell for a fourth day. Silver, platinum and palladium were all higher.
Source: Bloomberg
