Online Reporter
Gold rose to a record above $3 200 an ounce as concerns about the impact of tariffs on the global economy pushed investors to the haven.
Bullion gained as much as 1.4 percent in early Asian trading on Friday. Its price of $3 219.48 eclipsed the previous all-time high posted Thursday, when it closed up more than 3 percent for a second day.
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Gold’s haven status has been underlined this week, with President Donald Trump’s flip-flopping messaging on his tariff agenda sparking frantic selloffs for US stocks, bonds and the dollar, as fears of a worldwide recession engulfed Wall Street.
Risks and uncertainty remained even after his 90-day tariff pause on higher levies that hit dozens of trade partners, with duties on all Chinese imports now at least 145 percent.
“Gold is the best place to be in the market now,” said Liu Yuxuan, a Shanghai-based precious metal researcher at Guotai Jun’an Futures Co “The unprecedented trade tension has deepened the distrust of US dollar, intensifying the demand for” other safety assets, she added.
There’s increasing skepticism that trade talks before the next 90-day deadline will be wrapped up in a timely manner, despite the White House Economic Council Director Kevin Hassett saying the US is “well advanced” in its discussions with economic partners.
Gold’s rally of more than a fifth this year has also been boosted by central bank buying and hopes for more Federal Reserve monetary easing.
On Thursday, data showed underlying US inflation cooled broadly in March, with traders now pricing in expectations for three interest-rate cuts over the remainder of the year, with a chance of a fourth. Lower rates typically benefit bullion as it pays no interest. – Bloomberg
Spot gold was up 1.1 percent to $3 212.41 an ounce as of 9:51 a.m. in Singapore, on track for a weekly gain of nearly 6 percent. The Bloomberg Dollar Spot Index fell for a fourth day. Silver slipped, while platinum and palladium edged higher.
