Gold prices soared to an all-time high on Friday as growing concerns over U.S. President Donald Trump’s latest tariff plans triggered a flight to safety among investors. The potential for a deepening global trade war has intensified demand for the precious metal, a traditional safe-haven asset.
Spot gold climbed 0.6% to $3,073.79 an ounce as of 0230 GMT, after reaching a record high of $3,077.44 earlier in the session. The yellow metal has gained 1.7% this week, while U.S. gold futures surged 0.8% to $3,083.60.
“Gold has the wind at its back at the moment. U.S. trade policy, U.S. fiscal policy, geopolitics, and a growth slowdown – everything is blowing in gold’s direction,” said Kyle Rodda, a financial market analyst at Capital.com. He noted that the next key milestone for gold prices would be the $3,100 per ounce mark.
The surge in gold prices is being fueled by a mix of economic and geopolitical concerns, including uncertainty surrounding tariffs, prospects of interest rate cuts, and global conflicts. Central bank buying has also played a significant role in bolstering gold’s rally in 2025.
Adding to market jitters, Canadian Prime Minister Mark Carney warned on Thursday that Canada would respond with its own trade actions if Trump proceeds with new auto tariffs. The move could further escalate trade tensions that have already roiled global stock markets.
Investors are now closely watching the reciprocal tariffs set to take effect on April 2, which analysts say could drive inflation, slow economic growth, and deepen trade disputes. “We continue to hold a bullish outlook towards gold prices, with gold continuing to benefit from U.S. policy uncertainty, trade tensions, military conflicts around the world, inflation worries, and macro uncertainty,” analysts at BMI said in a note.
Gold has long been regarded as a hedge against economic and political instability and typically performs well in a low-interest-rate environment. However, with the Federal Reserve holding its benchmark rate steady, market participants are keenly awaiting the U.S. Personal Consumption Expenditures data due later today, which could influence expectations for future rate cuts.
Meanwhile, other precious metals showed mixed movement. Spot silver dipped 0.3% to $34.31 an ounce, platinum rose 0.3% to $988.45, and palladium edged up 0.1% to $976.50.
As global uncertainties continue to mount, gold’s record-breaking rally underscores its enduring appeal as a safe-haven investment, with many analysts predicting further gains in the near term.