Gold prices hit an all-time high on Friday, briefly touching the $2,800 mark, as market participants rushed to seek the safe-haven asset after U.S. President Donald Trump reiterated his tariff threats.
Spot gold was steady at $2,795.52 an ounce at 11:18 GMT, after hitting an all-time high of $2,800.99 earlier in the session. Prices were up more than 6% on the month and 1% on the week.
U.S. gold futures were virtually unchanged and traded at $2,820.10.
"The rally could be sustained as long as there is uncertainty in the market. Much of the current uncertainty is due to not knowing if and how tariffs will be implemented," said WisdomTree commodity strategist Nitesh Shah.
Trump reiterated Thursday that the United States will impose a 25% tariff on imports from Mexico and Canada and said he was still considering new tariffs on Chinese goods.
Gold bullion is a preferred asset in times of economic and geopolitical turmoil.
"We see central bank purchases as the strongest structural force in the gold market, which supports our constructive long-term view," said Carsten Menke, analyst at Julius Baer.
Market attention will now turn to the December U.S. personal consumption expenditures price index report due at 1330 GMT, the Fed's favorite inflation gauge, due later in the day. Earlier this week, Fed Chairman Jerome Powell said inflation and employment data would determine when easing measures would be appropriate.
Data on Thursday showed U.S. economic growth slowed in the fourth quarter, but consumer spending rose at its fastest pace in nearly two years.
If the combination of high inflation and slow growth occurs, the $3,000 level will look increasingly plausible, said Ricardo Evangelista, senior analyst at ActivTrades.
On the physical front, high prices kept demand for Indian gold subdued and potential buyers were waiting for the federal budget on February 1.
Among other metals, spot silver fell 0.2% to $31.62 after hitting a more than one-month high on Thursday.
Platinum advanced 1.2% to $978.55, while palladium fell 0.3% to $986.50.
Ashitha Shivaprasad, Reuters