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Gold extended its record-setting run on Friday as investors continue to flock into the safe-haven metal amid concerns of a widening global trade war.
Spot gold scaled a new all-time high of $3,086.93 per ounce in the early morning trading, before pulling back to $3,072.96 for an intraday gain of 0.4%. It is now up 1.8% for the week and on track for a fourth straight weekly gain.
Gold futures, meanwhile, crossed the $3,100-an-ounce mark, up 0.5% at $3,106.40 per ounce in New York.
“It continues to be the safe-haven demand on ramped up concerns about tariffs, trade and ongoing geopolitical uncertainty as well [that is supporting gold],” said Peter Grant, senior metals strategist at Zaner Metals.
On Thursday, US President Donald Trump signed a proclamation to slap a 25% tariff on auto imports and pledged harsher punishment on Europe and Canada if they join forces “to do economic harm” to the US.
Markets are also bracing for a fresh wave of trade levies on April 2 as the White House prepares so-called reciprocal tariffs.
The threat of a global-scale trade war has overshadowed fresh data coming out of the US, which showed that the economy expanded at a quicker pace in the fourth quarter than previously estimated.
Mounting fears about the potential impacts of an escalating trade war have sent gold flying in recent weeks, with the precious metal now up 17% this year, setting as many as 15 record highs along the way.
Gold’s rally has also been fueled by robust central bank buying, a trend many expect to continue and drive up prices.
Driven by the strong demand, several major banks have raised their price targets for bullion, with Goldman Sachs Group this week ramping up its forecast to $3,300 an ounce by year-end.
Elsewhere, silver was close to its highest since 2012. Like gold, the white metal has benefited from strong haven demand, and fears over potential tariffs have drawn vast quantities out of London into US vaults.
(With files from Bloomberg and Reuters)
