Gold prices surged to fresh all-time highs on Friday as investors sought safety amid rising trade tensions and concerns over the U.S. economy.
By 3:45 pm AEST (5:45 am GMT), spot gold was up $24.85, or 0.7%, at US$3,197.81 per ounce, hovering at fresh record highs.
The ongoing retreat in the U.S. dollar and growing expectations of interest rate cuts by the Federal Reserve added further support to the precious metal’s rally.
The rally comes amid escalating trade frictions between the United States and China. While President Donald Trump on Wednesday announced a temporary reduction in duties for most trading partners, he simultaneously raised tariffs on Chinese imports.
Beijing responded with a retaliatory 84% tariff on U.S. goods, stoking renewed fears of a prolonged trade war between the world’s two largest economies.
The latest inflation data out of the United States added to the mix. According to the Bureau of Labor Statistics, consumer price inflation fell more than expected in March.
The annual CPI eased to 2.4%, down from 2.8% in February and below the 2.6% forecast. Core inflation, which strips out food and energy prices, rose 2.8%, also undershooting market expectations.
Investors are closely watching upcoming U.S. producer price index (PPI) data and developments in trade negotiations for further direction on inflation and global risk sentiment.
