Gold hits record high as tariff uncertainty sparks safe-haven rush
Gold prices scaled an all-time high on Friday, briefly touching the $2,800 mark, as market participants rushed to the safe-haven asset after US President Donald Trump reiterated his tariff threats.
Spot gold steadied at $2,795.52 per ounce by 11:18 GMT, after hitting a record peak of $2,800.99 earlier in the session. Prices rose more than 6% for the month and 1% for the week.
US gold futures were little changed at $2,820.10.
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"The rally could hold for as long as there is uncertainty in the market. A lot of today's uncertainty stems from not knowing whether and how tariffs will be applied," said WisdomTree commodities strategist Nitesh Shah.
Trump reiterated on Thursday that the United States would impose a 25% duty on imports from Mexico and Canada and said he was still considering new tariffs on Chinese goods.
Bullion is a preferred asset during times of economic and geopolitical turmoil.
"We see central bank buying as the strongest structural force in the gold market, underpinning our long-term constructive view," said Carsten Menke, analyst at Julius Baer.
Market focus will now switch to the December US personal consumption expenditures price index report due at 1330 GMT, the Federal Reserve's favoured gauge of inflation, due later in the day. Earlier this week, Fed Chair Jerome Powell said inflation and jobs data would determine when easing would be appropriate.
Data on Thursday showed US economic growth slowed in the fourth quarter but consumer spending increased at its fastest pace in nearly two years.
If the combination of high inflation and sluggish growth unfolds, then the $3,000 level will appear increasingly plausible, said Ricardo Evangelista, senior analyst at ActivTrades.
On the physical front, high prices kept Indian gold demand subdued and potential buyers were awaiting the federal budget on Feb. 1.
Among other metals, spot silver fell 0.2% to $31.62 after hitting an over one-month high on Thursday.
Platinum firmed 1.2% to $978.55, while palladium fell 0.3% to $986.50.
