Gold prices surged to an all-time high on Thursday as investors sought safe-haven assets amid growing uncertainty over U.S. tariff threats. Markets also focused on upcoming inflation data for clues about the Federal Reserve’s next move.
Gold Soars Past $2,798 Amid Market Jitters
Spot gold rose 1.4% to $2,796.15 per ounce by 11:07 a.m. ET (1603 GMT), after touching a record $2,798.24 earlier in the session. U.S. gold futures jumped 2% to $2,824.
“We are seeing heightened uncertainty and anxiety about the Trump administration’s new trade and foreign policy moves, which is driving fresh technical buying in both gold and silver,” said Jim Wyckoff, senior market analyst at Kitco Metals.
The surge came as the White House confirmed that President Donald Trump plans to impose steep tariffs on Mexico and Canada this Saturday, while also considering additional tariffs on China.
Weaker Dollar and Treasury Yields Boost Gold
A softer U.S. dollar, which slipped 0.2%, made gold more attractive for investors using other currencies. Meanwhile, the yield on 10-year U.S. Treasury notes fell to its lowest level in over a month, further fueling demand for the metal.
“Gold is shining as a safe-haven asset, with investors seeking shelter from the unpredictability of global trade policies,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Fed Holds Rates, Markets Eye Inflation Data
The Federal Reserve kept interest rates steady on Wednesday, as expected. Fed Chair Jerome Powell indicated there’s no rush to cut rates, despite signs of slowing economic growth in the fourth quarter. Investors are now awaiting Friday’s release of the U.S. Personal Consumption Expenditures (PCE) price index, a key inflation gauge that could influence the Fed’s policy path.
Silver, Platinum, and Palladium Rally
Gold’s rally spilled over into other precious metals:
- Silver surged 2.2% to $31.48 per ounce.
- Platinum rose 2.1% to $965.95.
- Palladium climbed 2.3% to $984.50.
“The platinum and palladium markets are benefiting from the strong momentum in gold and silver,” Wyckoff added.
As global economic uncertainty intensifies, investors continue to flock to precious metals, pushing gold prices to historic levels. All eyes are now on the upcoming inflation report, which could determine the next big market move.
