Gold costs surged to a document excessive on Thursday, as fears of a worldwide commerce struggle sparked by US President Donald Trump’s tariff threats fueled safe-haven demand for the dear metallic.
Spot gold was regular at $2,930.19 an oz, as of 9:17 a.m. ET (1417 GMT) after hitting $2,954.69 earlier within the session, its tenth document excessive this 12 months.
U.S. gold futures gained 0.4% to $2,946.90.
Gold, a safe-haven in occasions of uncertainty, has gained 12% to date this 12 months.
“Ongoing commerce tensions proceed to stoke inflation and development considerations and due to this fact safe-haven curiosity in gold,” stated Peter Grant, vice chairman and senior metals strategist at Zaner Metals.
Trump stated on Wednesday he would announce tariffs associated to lumber, automobiles, semiconductors and prescription drugs “over the subsequent month or sooner”.
Since taking workplace on January 20, Trump has imposed a ten% tariff on Chinese language imports and a 25% tariff on metal and aluminium.
“We proceed to see central financial institution shopping for … all year long. That’s one of many essential underlying components of help. We’re additionally seeing ETF flows with three straight days of flows into the gold market,” stated Phillip Streible, chief market strategist at Blue Line Futures.
Trump additionally denounced Ukrainian President Volodymyr Zelenskiy as a dictator on Wednesday and informed him he needed to transfer rapidly to safe peace or threat dropping his nation.
A possible peace deal might briefly decrease geopolitical tensions and will weigh on gold for brief time period, stated Grant, including, “the all-time excessive may maintain for quite a lot of weeks as there are adequate basic components that stay very supportive.”
Elsewhere, minutes of the Federal Reserve’s final coverage assembly on Wednesday confirmed
Trump’s preliminary coverage proposals had stoked considerations over rising inflation, reinforcing the central financial institution’s stance to carry off on additional fee cuts.