Due to continued concerns about the trade war and anticipation of a rate cut by the US Federal Reserve, safe-haven gold rose to a record high on Friday, trading near the crucial $3,000 threshold. At the Morning, the price of spot gold was steady at $2,990.54 an ounce. A record high of $2,993.80 was reached by safe-haven bullion earlier in the day.
U.S. gold futures increased to $3,004.20, up 0.4%. This year, the bullion has reached 13 all-time highs and is poised for a second consecutive week of increases.
The largest gold-backed ETF in the world, SPDR Gold Trust, reported that its holdings reached 905.81 metric tons in late February, the highest level since August 2023. Analysts predict that in June, officials will start lowering borrowing costs again.
The tariffs imposed by the U.S. President have significantly increased the demand for gold. On Thursday, Trump threatened to impose a 200% tariff on European booze imports, further intensifying the global trade battle that has shaken financial markets and sparked worries of a recession.
Consumer prices cooled faster than analysts had predicted, according to data released on Wednesday, suggesting that the Fed may lower interest rates this year. It is generally anticipated that the Fed will maintain its benchmark overnight interest rate at its upcoming meeting on Wednesday.
Platinum dropped 0.2% to $992.15, palladium increased 1% to $967.42, while spot silver increased 0.5% to $33.96 an ounce.
