Gold prices surged to a record high on Thursday, driven by safe-haven demand due to escalating US tariff threats. Spot gold rose 1.3% to $2,794.42 per ounce, its highest level at $2798.24, as investors sought shelter from economic uncertainty.
The White House announced plans to impose steep tariffs on Mexico and Canada, while also considering China as a target. This news sparked fresh buying in the gold market, with experts attributing it to increased anxiety about trade policies and foreign policy.
“Gold is shining as a safe-haven asset,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown. “Investors are seeking shelter from the storm of unpredictability.”
The US dollar fell 0.2%, making gold more affordable for holders of other currencies. Ten-year US Treasury yields also plummeted to their lowest level in over a month.
Meanwhile, data showed that US economic growth slowed in the fourth quarter, but analysts expect robust domestic demand to keep interest rates on hold for now. Investors are eagerly awaiting the release of the December US personal consumption expenditures (PCE) price index report on Friday.
In addition to gold, silver and platinum also rose, with spot prices up 2.5% at $31.56 per ounce, and platinum adding 2.5% to $970.15.
Source: https://www.reuters.com/markets/commodities/gold-tight-range-with-focus-trump-policies-inflation-data-2025-01-30