Gold Holds Near Record as Trump Tariff Pledges Fuel Haven Demand

Gold advanced for a third day to trade near a record high after US President Donald Trump’s order for reciprocal tariffs against several nations increased uncertainty around trade and the global economy. 

Bullion traded around $2,935 an ounce, putting it on track for a seventh week of gains — its longest run since August 2020. Trump on Thursday signed a measure directing the US Trade Representative and Commerce secretary to propose new levies on a country-by-country basis, a process that could take a while to complete.

Reciprocal tariffs would amount to Trump’s broadest action to address US trade deficits, yet his decision not to implement them immediately could be seen as an opening bid for negotiation rather than a sign he’s committed to following through. The president has already imposed 10% levies on Chinese goods and plans to slap 25% duties on all US steel and aluminum imports next month.

Gold climbed to a record of $2,942.68 an ounce on Tuesday, with Trump’s disruptive moves on trade and geopolitics underscoring bullion’s role as a store of value in uncertain times. Investors are trying to get a read on the potential implications for the US economy and monetary policy should the White House’s policies reignite inflation and subdue growth.

Listen to the Next Africa podcast on Apple, Spotify or anywhere you listen.

Banks are calling for gold to hit $3,000 an ounce amid demand for haven assets, with Citigroup Inc. saying last week it expects prices to reach that level within three months. 

Central banks, including China’s, have added to holdings, while bullion-backed exchange-traded funds expanded — also supporting gold’s 12% gain so far this year.

Spot gold rose 0.3% to $2,937.04 an ounce at 10:44 a.m. in London, taking this week’s gains to 2.7%. The Bloomberg Dollar Spot Index fell 0.1%. Silver surged 2.8%, while platinum and palladium each rose 0.7%.

Elsewhere, investors looked past hot inflation data amid signs the Federal Reserve’s favored price gauge will be softer than expected. The producer price index rose in January by more than forecast, but several of its components that feed into the Fed’s preferred inflation measure — the personal consumption expenditures price index — were more favorable last month. 

Traders will dissect the next PCE report on Feb. 28 for further clues about the central bank’s easing path. Lower borrowing costs typically benefit gold, as it doesn’t pay interest

With assistance from Preeti Soni, Andrew Janes and Jack Ryan.

This article was generated from an automated news agency feed without modifications to text.