Gold prices surged to a record high on Friday, zooming past $3,200 per ounce and hitting an all-time session high of $2,263. The precious metal’s best five-day performance since 2020 capped a chaotic week in the markets, which have been weighed down by escalating trade tensions between China and the US.
The move was in response to China’s decision to raise duties on imports of US goods to 125%, just days after the Trump administration increased tariffs on China to 145%. The reaction sent shockwaves through the bond market, with long-dated Treasury yields surging to their highest level since February. This came as investors sought safe havens from the market volatility.
“We’re seeing a shift in appetite for US assets,” said Ryan McIntyre, senior managing partner at Sprott. “Confidence in the US has clearly been shaken, and people are looking to diversify.”
Gold’s rally is also attributed to increased demand from central banks and investors, who have been pouring into physical gold-backed exchange-traded funds (ETFs). The precious metal has surged 24% this year, with numerous all-time highs.
“The continued incoherence of policy should keep the bull case for gold relatively solid,” said Michael Brown, senior research strategist at Pepperstone.
Source: https://finance.yahoo.com/news/gold-notches-best-week-since-2020-amid-shaken-investor-confidence-in-us-201546983.html