Trump’s tariff plans push gold to record levels, sparking investor rush

LONDON: Gold prices surged to a record high on Friday as fresh tariff plans from US President Donald Trump fueled fears the global trade war will intensify further, prompting investors to seek refuge in the safe-haven precious metal.

Spot gold climbed 0.6 per cent to $3,074.31 an ounce as of 0400 GMT, after hitting an all-time high of $3,077.44 earlier in the session. Bullion is up 1.7 per cent so far this week, on track for a fourth straight weekly gain.

US gold futures gained 0.8 per cent to $3,084.70.

“Gold has the wind at its back at the moment. US trade policy, US fiscal policy, geopolitics, and a growth slowdown – everything is blowing in gold’s direction,” Capital.com’s financial market analyst Kyle Rodda said, adding that $3,100/oz is the next big milestone for prices.

Uncertainty surrounding tariffs, potential for interest rate cuts, geopolitical conflicts and central bank buying have all fuelled gold’s surge past the key $3,000/oz milestone.

“Markets are yet to have an understanding of what the retaliatory responses will be,” which is also helping gold, said Marex analyst Edward Meir.

Canadian Prime Minister Mark Carney said he would respond with unspecified trade actions if Trump imposes new auto tariffs that have expanded a global trade war and hammered stocks.

Trump is set to implement reciprocal tariffs on April 2, which could stoke inflation, dampen economic growth, and escalate trade disputes.

“We continue to hold a bullish outlook towards gold prices, with gold continuing to benefit from US policy uncertainty, trade tensions, military conflicts around the world, inflation worries and macro uncertainty,” BMI analysts said in a note.

Gold, traditionally seen as a hedge against economic and political instability, thrives in a low-interest rate environment.

Richmond Federal Reserve President Tom Barkin asserted that the central bank’s current “moderately restrictive” monetary policy is appropriate, given high levels of uncertainty and rapid policy changes in the US government.

The market now awaits the US personal consumption expenditures data due later in the day.

Spot silver fell 0.4 per cent to $34.27 an ounce, platinum eased 0.2 per cent to $984.59, and palladium firmed 0.1 per cent to $976.25.

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