Gold climbs to record high, $3,000/oz milestone in view
Shafaq News/ Gold reached anall-time high on Friday, driven by uncertainty over U.S. tariffs, tradetensions and growing expectations of monetary policy easing by the FederalReserve.
Spot gold was down 0.1% at $2,984.71an ounce as of 0701 GMT. Earlier in the session, safe-haven bullion hit arecord high of $2,993.80 and hovered near the key milestone of $3,000.
Bullion is on track for a secondconsecutive weekly increase, with a 2.5% gain so far.
U.S. gold futures rose 0.2% to$2,997.50.
"The risk-off market stancereflects investors' expectations that trade tensions are likely to get worsebefore it cools, and are turning to safe-haven gold once again as a hedgeagainst portfolio volatility," said IG market strategist Yeap Jun Rong.
In the latest development of U.S.President Donald Trump's multi-front trade war, the European Union retaliatedto blanket U.S. tariffs on steel and aluminium by imposing a 50% tax onAmerican whiskey exports. In response, the president threatened on Truth Socialto impose a 200% tariff on European wine and spirit imports.
"The psychological $3,000 levelis now coming into view for gold prices, and as we approach the second quarter,where reciprocal tariffs could trigger another wave of market turbulence, goldremains a compelling safe-haven asset in an environment where alternatives arescarce," Rong said.
Trump's tariffs are widely expectedto fuel inflation and economic uncertainty, and have prompted gold to reachmultiple record highs in 2025.
Gold is seen as a hedge againstpolitical risks and inflation.
Investors now await the Fed'smonetary policy meeting, scheduled for Wednesday. The central bank is expectedto keep its benchmark overnight interest rate in the 4.25%-4.50% range.
Non-yielding bullion thrives in alow-interest-rate environment.
Meanwhile, Russian PresidentVladimir Putin said on Thursday Russia supported a U.S. proposal for aceasefire in Ukraine in principle, but sought a number of clarifications andconditions that appeared to rule out a quick end to the fighting.
Spot silver firmed 0.2% to $33.86 anounce, platinum lost 0.3% to $991.34 and palladium gained 0.7% to $964.45.
(REUTERS)
