Gold prices rose to hit a lifetime high today, sparked by safe-haven demand due to US tariff threats, while the focus was also on a crucial inflation report for clues on the Federal Reserve’s policy path.
Spot gold was up 1.3% at $2,794.69 per ounce, as of 1752 GMT, hitting its record high level at $2798.24 earlier in the session. US gold futures climbed 1.9% to $2,822.30.
“We are seeing keener uncertainty and anxiety about the Trump administration’s new policies on trade and foreign policy … fresh technical buying coming in as prices are trending higher now in both gold and silver,” said Jim Wyckoff, a senior market analyst at Kitco Metals.
Earlier this week, the White House said US President Donald Trump planned to hit Mexico and Canada with steep tariffs on Saturday and was also considering some on China.
The dollar fell 0.2%, making gold less expensive for other currency holders, while 10-year US Treasury yields fell to their lowest level in over a month.
“Gold is shining as a safe haven asset, with investors seeking shelter to weather the storm of unpredictability,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
The Fed held rates steady on Wednesday, in line with expectations, with Chair Jerome Powell saying there would be no rush to cut them again.
Data showed that US economic growth slowed in the fourth quarter, but analysts reckon robust domestic demand will probably keep the Fed on a slow interest rate cut path.
Investors now await the December US personal consumption expenditures (PCE) price index report on Friday.
Article Source – Gold hits record high on safe-haven demand amid tariff threats – RTE
