Gold prices surpassed the key $2,800 mark for the first time ever on Friday, fuelled by a rush to safety on U.S. President Donald Trump’s tariff threats, which heightened concerns about global economic growth and inflationary pressures.
Spot gold rose 0.6% to $2,810.55 per ounce, after hitting a record high of $2,817.23 earlier in the session.
U.S. gold futures were little changed at $2,822.90, trading at a premium to spot gold rates.
“There’s a lot of uncertainty out there right now and also [a] wait-and-see attitude on the geopolitical stage with tariffs,” said Bob Haberkorn, senior market strategist at RJO Futures.
Trump has set a Saturday deadline to slap a 25% tariff on imports from Canada and Mexico and said he was still considering new tariffs on Chinese goods.
Bullion, a preferred asset during times of economic and geopolitical turmoil, is on track to record its best monthly performance since March 2024, rising more than 7% in January. The metal surpassed multiple record peaks last year.
Additionally, “the mixed signals we’re getting from the Fed and the Trump administration right now is causing uncertainty in the market… Trump wants to cut interest rates, while the Fed wants to hold them steady,” Haberkorn added.
Earlier this week, Federal Reserve Chair Jerome Powell said there would be no rush to cut interest rates again, contradicting Trump’s earlier calls demanding borrowing costs be lowered.
The latest reading on inflation last month, released Friday, showed U.S. prices increased in December while consumer spending surged, suggesting that the Fed could wait some time before cutting interest rates this year.
Among other metals, spot silver fell 0.5% to $31.52 an ounce after hitting a more than one-month high on Thursday.
“We expect this strength in [silver] prices to attract subsequent discretionary trader interest, given this cohort remained nearly flat as of last week, with gold printing new all-time highs and the XAUXAG (gold-to-silver) ratio remaining at elevated levels,” TD Securities said in a note.
Platinum firmed 1% to $975.78, while palladium rose 1.1% to $1,000.
All three metals were headed for monthly gains.
