Gold prices surged to a record high on Thursday as concerns over a global trade war fueled demand for the precious metal. Spot gold rose 0.1% to $2,936.38 an ounce, with U.S. gold futures settling 0.7% higher at $2,956.10.
The surge in gold prices is attributed to ongoing trade tensions, which have sparked fears of inflation and growth concerns. This has led investors to seek safe-haven assets like gold. Peter Grant, vice president and senior metals strategist at Zaner Metals, stated that “ongoing trade tensions continue to stoke inflation and growth concerns and therefore safe-haven interest in gold.”
The US President’s recent tariff threats have also contributed to the increase in gold prices. Trump has imposed tariffs on various imports, including lumber, cars, semiconductors, and pharmaceuticals. This has led to increased demand for gold exports from Switzerland, with supplies soaring to the highest in at least 13 years.
The potential for a peace deal between Ukraine and Russia may temporarily lower geopolitical tensions, but experts believe that the uptrend in gold prices will continue due to fundamental factors supporting the metal. The US Federal Reserve’s policy meeting minutes also reinforced concerns over rising inflation, which has led to a stance of holding off on further rate cuts.
Other precious metals like silver, platinum, and palladium have also seen gains, with spot silver adding 0.6% at $32.92 an ounce, while platinum rose 0.7% to $978.05 and palladium advanced 1% to $978.02.
Source: https://www.cnbc.com/2025/02/20/trump-tariff-worries-keep-gold-near-record-high.html