Photo by Michael Steinberg
Gold prices reached an all-time high on Friday as investors sought refuge in the precious metal amid concerns of a global trade conflict sparked by US President Donald Trump’s recent tariffs.
As of 09:06 a.m. ET (1306 GMT), spot gold increased by 0.7 percent to $3,077.48 per ounce, following an earlier peak of $3,086.21, marking its eighteenth record high this year. The precious metal has risen 1.8 percent this week and is poised for its fourth consecutive weekly increase.
US gold futures also rose by 0.7 percent, reaching $3,083.20.
Peter Grant, vice president and senior metals strategist at Zaner Metals, noted that “the ongoing demand for safe-haven assets is driven by heightened concerns regarding tariffs, trade issues, and persistent geopolitical uncertainty,” which continues to bolster gold prices. Gold is typically viewed as a safeguard against economic and political turmoil and tends to perform well in a low-interest rate environment.
The Personal Consumption Expenditures (PCE) price index saw a 0.4 percent increase in February, surpassing analysts’ expectations of a 0.3 percent rise, mirroring January’s growth.
Grant remarked that this data is unlikely to significantly alter expectations for interest rate cuts, as it is only marginally above forecasts.
The Federal Reserve has maintained steady interest rates this year following three cuts in 2024, but has indicated the possibility of a half-percentage point reduction later in the year.
Currently, the market anticipates 63 basis points of Fed rate cuts by the end of the year, beginning in July.
Investors are preparing for Trump’s announcement regarding reciprocal tariffs, which he plans to unveil on April 2.
Analysts suggest that Trump’s policies are viewed as inflationary, posing risks to economic growth and heightening trade tensions.
In other precious metals, spot silver rose by 0.3 percent to $34.52 per ounce, platinum decreased by 0.2 percent to $983.95, and palladium increased by 0.6 percent to $981.51, with all three metals on track for weekly gains.
