Gold headed for a third weekly gain as concerns about the potential impacts of U.S. President Donald Trump’s tariffs fuel demand for haven assets.
Bullion traded just roughly $20 below Thursday’s record high of $3,057.49 an ounce. A fresh bout of instability has gripped markets amid mounting worries about an escalation in the U.S.-led trade war. The precious metal has benefited as the White House prepares to announce another wave of tariffs on April 2, though the exact scope isn’t clear.
Gold has climbed 16 per cent this year in a rally that’s seen it hit 15 all-time highs in 2025, extending last year’s strong gains as investors seek safety. Geopolitical conflicts in the Middle East and Ukraine have also bolstered the metal’s appeal. Several major banks have raised their price targets for bullion in recent weeks, with Macquarie Group forecasting it could rise as high as $3,500 an ounce.
US sentiment remains fragile, even as reports on Thursday showed existing home sales topped estimates, while initial jobless claims were in line with expectations — a sign of a healthy labor market. That’s had investors considering the path ahead for monetary easing by the Federal Reserve, after policymakers on Wednesday kept interest rates on hold and flagged projections for both slower growth and higher inflation this year.
Bond traders remain confident that the central bank is still on track to cut rates further in 2025. Lower borrowing costs typically boost non-interest paying bullion.
Spot gold edged 0.3 per cent lower to $3,034.92 an ounce as of 12:36 p.m. in London, set for a 1.7 per cent weekly gain. The Bloomberg Dollar Spot Index was little changed. Silver, platinum and palladium all fell.
--With assistance from Jack Ryan.
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