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Gold surged to an all-time high in Asian trading on Friday, driven by increased safe-haven demand after U.S. President Donald Trump imposed steep tariffs on the auto sector.
Gold Extends Gains as Trade Uncertainty Rises
- Spot gold climbed 0.6% to $3,073.79/oz, after touching a record $3,077.67/oz earlier.
- Gold futures (May delivery) gained 0.7% to $3,112.72/oz, peaking at $3,117.50/oz.
Gold’s strong March rally reflects growing market anxiety over:
- Trump’s tariffs, including potential reciprocal duties on major U.S. trading partners starting April 2.
- Geopolitical risks, with tensions escalating between Russia-Ukraine and Israel-Hamas.
- Recession fears, as trade disruptions and inflation weigh on economic growth.
Global Trade War Concerns Lift Safe-Haven Demand
Trump’s 25% tariff on foreign-made cars has sparked retaliation threats from Canada, China, Europe, and Mexico, signaling the start of a global trade war.
Trump is also considering tariffs on semiconductors, pharmaceuticals, and select commodities, adding to market uncertainty.
Other Precious & Industrial Metals React
- Platinum rose to $989.55/oz.
- Silver hit a 12-year high, rising 0.6% to $35.283/oz.
- Copper retreated, with LME copper down 0.3% ($9,828.80/ton) and U.S. copper futures down 0.4% ($5.1015/pound) after reaching record highs earlier this week.
Markets Brace for PCE Inflation Data
The February PCE price index, the Federal Reserve’s preferred inflation gauge, is due Friday.
- Core PCE inflation is expected to remain above the Fed’s 2% target, reducing the likelihood of early rate cuts.
- Recent consumer and producer inflation data showed mixed signals, keeping investors on edge.
With tariffs complicating the inflation outlook, markets are closely watching the Fed’s next moves.
