GOLD prices scaled a record peak on Friday as concerns over US President Donald Trump’s fresh tariff plans ignited fears of a global trade war, driving a rush towards the safe-haven allure of the precious metal.
Fundamentals
Spot gold climbed 0.2 per cent to US$3,061.72 an ounce, as of 0035 GMT, after hitting a record high of US$3,063.20 earlier in the session. Bullion is up 1.3 per cent so far this week.
US gold futures firmed 0.4 per cent to US$3,073.10.
A cocktail of factors including uncertainty surrounding tariffs, potential for interest rate cuts, geopolitical conflicts and central bank buying have all played a role in fueling gold’s surge in 2025.
Canadian Prime Minister Mark Carney said on Thursday that he would respond with unspecified trade actions if Trump imposes new auto tariffs that have expanded a global trade war and hammered stocks.
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All eyes are also on the reciprocal tariffs that Trump is set to implement on April 2, which could stoke inflation, dampen economic growth, and escalate trade disputes.
Gold is traditionally seen as a hedge against economic and political uncertainty and often thrives in a low-interest rate environment.
Richmond Federal Reserve President Tom Barkin asserted that the Fed’s current “moderately restrictive” monetary policy is appropriate given the high level of uncertainty and rapid policy changes in the US government.
The market awaits the US Personal Consumption Expenditures data due later in the day, which could influence expectations for interest rate cuts this year, following the Fed’s recent decision to hold its benchmark rate steady.
Spot silver rose 0.1 per cent to US$34.43 an ounce, platinum was steady at US$986.09 and palladium gained 0.3 per cent to US$978.71. REUTERS
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