Investors are flocking to gold as global trade war concerns intensify, pushing the precious metal to record-breaking heights. On Friday, spot gold surged to an impressive $3,074.43 per ounce, after momentarily peaking at $3,086.70 during trading. This marks the eighteenth record high this year, highlighting gold's growing status as a safe-haven asset.
The recent rise in gold prices is driven by fears over escalating tariffs and trade tensions, especially with U.S. President Donald Trump announcing new measures. Analysts point out that such geopolitical uncertainties make gold a preferred choice during economic instability. Peter Grant, vice president and senior metals strategist at Zaner Metals, emphasized that “gold continues to be the safe-haven demand on ramped-up concerns about tariffs, trade, and ongoing geopolitical uncertainty.”
Additionally, the U.S. Personal Consumption Expenditures (PCE) price index in February rose by 0.4%, slightly above expectations, further stoking inflation worries. Although the Federal Reserve has maintained steady interest rates after multiple cuts in 2024, hints of future rate cuts add to the market’s cautious outlook.
Despite some declines in spot silver, platinum, and palladium, all are showing signs of recovery and are set for weekly gains. With markets now anticipating reciprocal tariffs from Trump’s administration on April 2, the allure of gold as a reliable store of value is stronger than ever.
Investors are advised to keep a close eye on these trends as gold’s momentum could continue, offering a safe harbor in turbulent times.
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