Gold prices soar to all-time high over trade war concerns

Spot gold hits 18 record highs so far this year

US PCE at 0.4% in February

Silver, platinum & palladium headed for weekly gain

March 28 – Gold prices surged to a record high on Friday, as investors flocked to the safe-haven asset amid fears of a global trade war triggered by U.S. President Donald Trump’s latest tariffs.

Spot gold climbed 0.9% to $3,082.39 an ounce as of 11:38 a.m. ET after hitting its eighteenth record high this year at $3,086.70 earlier in the session. Bullion is up 2% this week and is on track for a fourth straight weekly gain.

U.S. gold futures added 0.9% to $3,088.90.

“It continues to be the safe-haven demand on ramped-up concerns about tariffs, trade and ongoing geopolitical uncertainty as well,” that is supporting gold, said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Gold, traditionally seen as a hedge against economic and political instability, tends to thrive in a low-interest rate environment.

The Personal Consumption Expenditures price index increased 0.4% in February, compared with analysts’ expectation of 0.3% rise, similar to January’s increase.

The data isn’t likely to change rate cut expectations very much, as it is only a little hotter than expected, Grant added.

The Fed has held interest rates steady so far this year after three rate cuts in 2024, but hinted at a potential half-percentage point in rate cuts later in the year.

The market is currently pricing 63 bps of Fed rate cuts by the year-end, starting in July.

Markets are now bracing for Trump’s plans for reciprocal tariffs, which he intends to lay out on April 2.

Trump’s policies are perceived as inflationary, posing a risk to economic growth and escalating trade tensions, analysts say.

Spot silver fell 0.6% to $34.21 an ounce, platinum eased 0.3% to $983.35, and palladium was down 0.2% to $973.25. All three were set for weekly gains.

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