Gold prices rose to hit a lifetime high this year, sparked by safe-haven demand due to U.S. tariff threats, while the focus was also on a crucial inflation report for clues on the Federal Reserve's policy path. Spot gold XAU= 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. U.S. 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 U.S. president Donald Trump plans to hit Mexico and Canada with steep tariffs on Saturday while also considering some on China.
The dollar =USD fell 0.2%, making gold less expensive for other currency holders, while yield on the 10-year U.S. Treasury notes US10YT=RR fell to its lowest level in over a month. USD/US/ "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 Platinum and Palladium market I think are seeing spillover buying interest from the rallying gold and silver markets and that's mainly what's driving those markets higher," Wyckoff added. Platinum XPT= added 2.1% to $965.95, and palladium XPD= gained 2.3% to $984.50.
How high will gold go in 2025?
Most global banks expect demand for gold to remain strong this year, with some forecasts predicting gold will hit $3,000 per ounce later this year.
Proceed with caution, though, when making investment decisions based on predictions. As its pointed out, divining the future path of gold prices is difficult because there are so many variables that can come into play.“While higher inflation is seen as giving gold prices a boost, the higher interest rates that result from elevated inflation tend to be a headwind to gold prices." Source
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