Gold prices soared to a record high of $2,947.11 per ounce on Thursday as investors sought safety in the metal amid concerns over US President Donald Trump’s tariff plans sparking inflation and a global trade war.
Spot gold rose 0.5% to $2,945.83 an ounce, with US gold futures gaining 0.9% to $2,963.80. The price surge is the tenth time this year that gold has hit a fresh peak, driven by fears of higher inflation and global trade tensions.
Trump’s recent tariffs on Chinese imports and steel/aluminum have raised concerns among investors, who are now looking to gold as a hedge against these risks. However, some analysts caution that safe-haven demand could dry up if a peace deal between Russia and Ukraine is imminent.
The Federal Reserve’s minutes from its last policy meeting showed that Trump’s tariff proposals had raised inflation concerns, but the overall market outlook for gold remains bullish. Analysts point to robust physical demand, central bank purchases, and the transition of physical gold ETFs from sellers to marginal buyers as key drivers of the price surge.
As the situation in Ukraine unfolds, some experts warn that a peace deal could reduce safe-haven demand for gold, potentially dampening prices. Meanwhile, spot silver rose 0.5% to $32.88 an ounce, while platinum and palladium also gained ground on Thursday.
Source: https://www.reuters.com/markets/commodities/trump-tariff-worries-keep-gold-near-record-high-2025-02-20