Gold prices surged to a record high on Friday, fueled by rising concerns over U.S. tariffs, trade tensions, and growing expectations of monetary policy easing by the Federal Reserve. Spot gold briefly touched $2,990.09 an ounce, within reach of the psychological $3,000 milestone, before easing slightly to $2,983.78 as of 0132 GMT. The precious metal is on track to register its second consecutive weekly gain, having risen 2.5% so far.
U.S. gold futures followed suit, climbing 0.2% to $2,996.70.
The surge in gold prices reflects a broader “risk-off” market sentiment, with investors increasingly turning to the safe-haven asset as a hedge against rising volatility in the wake of intensifying global trade tensions. “The risk-off market stance reflects investors’ expectations that trade tensions are likely to escalate before they ease, prompting many to seek refuge in gold as protection against market instability,” said Yeap Jun Rong, market strategist at IG.
The latest chapter in U.S. President Donald Trump’s ongoing trade war saw the European Union retaliate against sweeping U.S. tariffs on steel and aluminum by imposing a 50% tax on American whiskey exports. In response, President Trump threatened to impose a 200% tariff on European wines and spirits. These developments have heightened fears of further economic instability, contributing to gold’s appeal as a safe-haven asset.
“The psychological $3,000 level is now within sight for gold prices, and as we approach the second quarter, where retaliatory tariffs could spark another round of market turbulence, gold remains an attractive option in an environment where alternative investments are limited,” Rong added.
Trump’s tariffs have raised concerns about inflation and economic uncertainty, with gold reaching multiple record highs in 2025 as investors seek a store of value. The precious metal is traditionally seen as a hedge against both political risks and inflationary pressures.
Markets are now turning their attention to next week’s Federal Reserve monetary policy meeting. While the central bank is widely expected to maintain its benchmark overnight interest rate within the 4.25%-4.50% range, expectations of monetary easing have contributed to the strengthening of gold, which thrives in low interest rate environments.
Meanwhile, Russian President Vladimir Putin stated on Thursday that Russia supported a U.S. proposal for a ceasefire in Ukraine “in principle,” though he outlined several clarifications and conditions that seemed to suggest the conflict would not end swiftly.
In other metals markets, spot silver fell 0.2% to $33.72 an ounce, while platinum rose 0.1% to $995.30. Palladium gained 0.7%, reaching $964.32 an ounce.
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