NEW YORK: Gold prices rose to hit a lifetime high on Thursday, sparked by safe-haven demand due to US tariff threats, while the focus was also on a crucial inflation report for clues on the Federal Reserve’s policy path.
Spot gold was up 1.4% at $2,796.15 per ounce, as of 11:07 a.m. (1603 GMT), hitting its record high level at $2798.24 earlier in the session. US gold futures climbed 2% to $2,824. “We are seeing keener uncertainty and anxiety about the Trump administration’s new policies on trade and foreign policy ... fresh technical buying coming in as prices are trending higher now in both gold and silver,” said Jim Wyckoff, a senior market analyst at Kitco Metals.
Earlier this week, the White House said US president Donald Trump plans to hit Mexico and Canada with steep tariffs on Saturday while also considering some on China.
The dollar fell 0.2%, making gold less expensive for other currency holders, while yield on the 10-year US Treasury notes fell to its lowest level in over a month. “Gold is shining as a safe haven asset, with investors seeking shelter to weather the storm of unpredictability,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown. The Fed, meanwhile, held rates steady on Wednesday, in line with expectations, with Chair Jerome Powell saying there would be no rush to cut them again.
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