Gold reaches new high amid Trump’s tariff fears and weak inflation report

Cryptopolitan
Updated
Mitrade
coverImg
Source: DepositPhotos

Gold soared to a record $2,990.21 an ounce on Friday, surpassing highs set earlier in the week, as President Donald Trump’s tariff threats and weak inflation data drove investors toward safe investments. 


The precious metal’s rally was fueled by US data which showed stagnation in wholesale inflation in February, reinforcing prospects for an eased monetary policy by the Fed. 


Gold reaches new high amid Trump's tariff fears and weak inflation report

Lower borrowing costs typically benefit gold because it offers no yield of its own. Meanwhile, US government debt attracted heavy demand, pushing 10- and 30-year Treasury yields to fresh monthly peaks. 


Concerns over American growth also took a toll on equities, as the S&P 500 slipped into a 10% correction on Thursday, erasing about $5 trillion in market value since its February peak. 


Trump’s vow to hit European wine and related products with a 200% tariff added to investor anxiety, alongside his refusal to remove newly imposed steel and aluminum tariffs or back down on reciprocal tariffs slated for April 2.


Overall, Banks have become bullish on gold. The Macquarie Group predicted that its prejudice could surge up to $3,500 per ounce in the 2nd quarter. BNP Paribas SA expects that the average price of gold will remain above $3,000.


Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Gold price slides back closer to $3,300 amid tariff deals optimismGold price (XAU/USD) struggles to capitalize on the previous day's bounce from the vicinity of the $3,265-3,260 pivotal support and attracts fresh sellers during the Asian session on Tuesday.
Author  FXStreet
4 hours ago
Gold price (XAU/USD) struggles to capitalize on the previous day's bounce from the vicinity of the $3,265-3,260 pivotal support and attracts fresh sellers during the Asian session on Tuesday.
placeholder
Gold Price Forecast: XAU/USD holds below $3,350 on firmer US Dollar, easing US-China trade tensionsThe Gold price (XAU/USD) loses ground to around $3,335 during the early Asian session on Tuesday. The yellow metal edges lower amid a modest rebound of the US Dollar (USD) and a softening in tensions between the United States and China. 
Author  FXStreet
10 hours ago
The Gold price (XAU/USD) loses ground to around $3,335 during the early Asian session on Tuesday. The yellow metal edges lower amid a modest rebound of the US Dollar (USD) and a softening in tensions between the United States and China. 
placeholder
Gold price languishes below $3,300; last week’s swing low holds the key for bullsGold price (XAU/USD) attracts fresh sellers at the start of a new week and drops to the $3,268-3,267 area, back closer to Friday's swing low, during the Asian session.
Author  FXStreet
Yesterday 06: 10
Gold price (XAU/USD) attracts fresh sellers at the start of a new week and drops to the $3,268-3,267 area, back closer to Friday's swing low, during the Asian session.
placeholder
Gold Price Forecast: XAU/USD edges lower to near $3,300 as US-China trade tensions easeThe Gold price (XAU/USD) drifts lower to around $3,310 during the early Asian session on Monday. The precious metal retreats after hitting its record high last week amid signs that global trade tensions may be easing.
Author  FXStreet
Yesterday 01: 26
The Gold price (XAU/USD) drifts lower to around $3,310 during the early Asian session on Monday. The precious metal retreats after hitting its record high last week amid signs that global trade tensions may be easing.
placeholder
Gold edges down amid clash over status of US-China trade talksGold price is on the back foot on Friday, almost erasing all of Thursday’s gains, and looks set to close off this week in the red.
Author  FXStreet
Apr 25, Fri
Gold price is on the back foot on Friday, almost erasing all of Thursday’s gains, and looks set to close off this week in the red.
Real-time Quote