Gold hits record high above $3,200 amid trade war tensions
Photo: CNN
Gold prices soared nearly 2% on Friday, breaking past the critical $3,200 level, as investors sought safety amid growing fears of a U.S.-China trade war and a weakening dollar.
Spot gold jumped 1.7% to $3,227.39 an ounce, as of 1020 GMT, after hitting a record high of $3,237.56 earlier in the session. Bullion is up over 6% so far this week, News.Az reports, citing Reuters.
U.S. gold futures climbed over 2% to $3,246.30.
Beijing increased its tariffs on U.S. imports to 125% on Friday, hitting back against U.S. President Donald Trump's decision to hike duties on Chinese goods to 145%, raising the stakes in a trade war that threatens to upend global supply chains.
Global stocks fell and the dollar tumbled (.DXY). A lower dollar makes greenback-priced bullion cheaper for overseas buyers.
Spot gold has continued its blazing rally from the last year, hitting multiple record highs and gaining nearly 21% so far this year driven by uncertainties, central bank demand and increased flows into gold-backed exchange-traded funds.
Data on Thursday showed U.S. consumer prices unexpectedly fell in March. Focus was also on the U.S. producer price data due at 1230 GMT for insights into the Federal Reserve's monetary policy trajectory.
Traders now bet that the Fed will resume cutting rates in June and probably reduce by a full percentage point by the end of 2025.
Spot silver gained 0.8% to $31.46 an ounce, while platinum added 0.3% to $940.45. Palladium jumped 2.05% to $927.29.
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