Gold Prices Surge to Record High Amid Global Trade War Fears

Gold prices surged to an all-time high on Friday, as investors sought refuge in the precious metal amid growing concerns of a global trade war initiated by recent tariffs from U.S. President Donald Trump. Spot gold rose by 0.7% to reach $3,077.48 an ounce, hitting its eighteenth record high of the year at $3,086.21 earlier in the session. This increase marks a 1.8% uptick for the week, signifying the continuation of a four-week upward trend. Analysts attribute this demand to gold's traditional role as a safe-haven asset during periods of economic and political upheaval, noting its tendency to perform well in low-interest rate conditions. The rising Personal Consumption Expenditures (PCE) price index, up 0.4% in February, slightly surpassed expectations, though it is unlikely to alter interest rate projections significantly. The Federal Reserve has maintained steady interest rates this year, with a possibility of more rate cuts hinted at for later. Market anticipation is building around Trump's reciprocal tariff plans, expected on April 2, perceived as inflationary and risky to economic growth. Commentary: There appears to be a heightened sensitivity to geopolitical factors in financial markets, with gold acting as a critical barometer of investor sentiment. The fear of tariffs and trade wars underscores the delicate balance policymakers must achieve to foster economic stability. As gold continues its ascent, it reflects a broader narrative of uncertainty in global economic landscapes.