Gold hit a record high as President Donald Trump’s aggressive tariff policies and an unsatisfactory inflation report heightened anxiety about the US economic future, pushing investors toward safer assets.
The value of gold increased to $2,990.21 per ounce, breaking the prior records set earlier on Thursday and Friday.
ADVERTISEMENT
CONTINUE READING BELOW
This latest surge comes after US reports showed that wholesale inflation remained steady in February, largely due to a notable decline in trade margins. This scenario bolsters the case for more accommodative monetary policies as US authorities aim to address persistent price pressures. Lower borrowing costs usually favor gold, given it does not provide interest returns.
Moreover, the yields on 10- and 30-year Treasury bonds have reached their highest levels this month, as investors turned to US government bonds amid waning expectations for American economic growth, leading to reduced stock prices. Gold gained from the diminished yields and increased demand for safe-haven investments, particularly after the S&P 500 experienced its first 10% correction in almost two years, wiping out approximately $5 trillion in market capitalization since February’s peak.
Investor confidence further wavered on Thursday when Trump proposed a 200% tariff on European wines, champagnes, and various alcoholic drinks. He also stated that he would not retract the recently imposed tariffs on steel and aluminum, nor would he revoke plans for extensive reciprocal tariffs on global trading partners set to start as soon as April 2.
Financial analysts are growing increasingly optimistic that Trump’s tumultuous trade strategies, combined with additional emerging concerns, will result in continued increases in gold prices. This week, Macquarie Group predicted a spike to $3,500 per ounce in the second quarter, while BNP Paribas SA adjusted its forecasts to anticipate average prices significantly surpassing $3,000.
ADVERTISEMENT:
CONTINUE READING BELOW
As of 9:45 a.m. in Singapore, spot gold traded at $2,988.09 per ounce, positioned for a weekly gain of 2.7%. The Bloomberg Dollar Spot Index remained stable. Silver experienced a minor decline following a more than 5% increase over the previous three sessions, while platinum and palladium saw increases.
© 2025 Bloomberg
Stay updated with Moneyweb’s detailed finance and business news on WhatsApp here.
