Gold prices rose to a record high on Thursday, trading above the $2,950 per ounce level, as concerns that US President Donald Trump's tariff threats could spark a global trade war boosted investor appetite for the metal.
Spot gold rose 0.6% to $2,951.25 an ounce at 1136 GMT, after hitting $2,954.69 earlier in the session, its tenth record high this year. US gold futures gained 1.1% to $2,969.30. Gold, a safe haven in times of uncertainty, has gained 12% so far this year.
“The $3,000 level seems to be having a magnetic effect on the market, and although by most measures the market is technically overbought, it seems determined to break through that magic level,” said independent analyst Ross Norman.
“The $2,950 level is considered the last chart resistance before the market rises to challenge the $3,000 level, and now it seems to be a question of when, not if."
Trump said Wednesday that he will announce tariffs related to wood, automobiles, semiconductors, and pharmaceuticals ”within the next month or sooner.”
Since taking office on January 20, Trump has imposed a 10% tariff on Chinese imports and a 25% tariff on steel and aluminum.
Trump also denounced Ukrainian President Volodymyr Zelenskiy as a dictator on Wednesday and told him he had to act quickly to secure peace or risk losing his country.
“While there is speculation that potential peace talks between Ukraine and Russia could lead to some easing in the price of gold, any weakness in gold may be temporary,” IG market strategist Yeap Jun Rong wrote in a note.
Meanwhile, minutes from the Federal Reserve's latest monetary policy meeting on Wednesday showed that Trump's initial policy proposals had fueled concerns about rising inflation, reinforcing the central bank's stance of refraining from further rate cuts.
Spot silver rose 1.2% to $33.12 an ounce. Platinum rose 0.2% to $974.05, while palladium rose 1.7% to $984.59.
By Anjana Anil and Sarah Qureshi, Reuters