Spot Gold scaled a fresh all-time high of $3,219.84 per troy ounce on Friday amid US Dollar weakness and an escalating trade conflict that boosted safe haven flows.
“The rapid weakening of the U.S. dollar seems to be the main driver of gold’s rebound at the moment. That seems to reflect an ongoing exodus from USD-based assets, with stocks and bonds’ selloff amid tariff policy uncertainty,” Ilya Spivak, head of global macro at Tastylive, was quoted as saying by Reuters.
The US Dollar Index was last down 0.54% to 100.367.
A weaker dollar makes dollar-priced Gold more appealing to international investors holding other currencies.
US President Trump raised tariffs on Chinese imports to 145% this week, while announcing a 90-day pause on previously imposed tariffs for dozens of countries.
Investors are concerned that China may raise levies on US goods beyond the present 84%.
On the data front, annual headline consumer inflation in the US has eased more than expected to 2.4% in March from 2.8% in February.
And, annual core CPI inflation eased to 2.8% in March to mark the lowest rate since March 2021.
The minutes of the FOMC meeting in March showed that policy makers expected inflation would be pushed higher this year because of the impact of elevated tariffs, though they acknowledged considerable uncertainty over the magnitude and persistence of these effects.
Markets are now expecting the Federal Reserve will likely resume monetary policy easing in June, while pricing in 100 basis points of rate cuts by year-end.
Spot Gold was last up 1.14% on the day to trade at $3,211.69 per troy ounce.
The precious metal was set to register its best weekly performance since mid-November 2024, gaining 5.64% so far this week.
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