Spot Gold scaled a fresh all-time high of $3,086.09 per troy ounce on Friday, as US President Trump’s tariff plans sparked concerns of an expanding global trade war, triggering a rush to safe haven assets.
Trump on Wednesday announced a 25% tariff on imported cars and light trucks, which followed earlier measures, including levies on steel and aluminum imports.
Canada’s Prime Minister Mark Carney said yesterday his country would respond with unspecified trade actions in case the US imposes new auto tariffs.
The European Union has also threatened to implement retaliatory tariffs.
The Trump administration’s reciprocal tariffs, which are set to take effect on April 2nd, now come in the spotlight, as many believe they may reignite inflation and hinder GDP growth.
“Gold has the wind at its back at the moment. U.S. trade policy, U.S. fiscal policy, geopolitics, and a growth slowdown – everything is blowing in gold’s direction,” Capital.com’s financial market analyst Kyle Rodda was quoted as saying by Reuters.
Uncertainty surrounding US tariffs, potential rate cuts, geopolitical conflicts and sustained central bank buying have fueled Gold’s rally to a series of record highs this year.
Spot Gold was last up 0.46% on the day to trade at $3,070.72 per troy ounce.
In terms of macro data, traders are now expecting the US PCE inflation report, which may provide more insight into the Federal Reserve’s potential course of action in regard to interest rates.
Annual PCE inflation probably remained steady at 2.5% in February, according to market consensus, while annual core PCE inflation probably picked up to 2.7%.
The data will be particularly relevant after the Federal Reserve’s recent upward revision of its annual core PCE inflation forecast.
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