Gold hits new highs
What’s happening: Gold prices recorded sharp gains on Thursday, reaching all-time highs during the session.
What happened: Investors have been flocking to safe-haven options due to rising global trade tensions after US President Donald Trump’s tariff announcements.
Trump’s auto tariffs and weakness in the US dollar provided support to gold on Thursday.
Why it matters: On Wednesday, President Donald Trump announced plans of imposing 25% tariffs on vehicles and foreign-made auto parts imported into the US. Several nations around the globe threatened to impose retaliatory tariffs following Trump’s announcement.
Gold hits new highs on trade sanctions concerns
Shares of some of the world’s biggest automakers came under pressure following the news. Investors sold auto shares and diverted their funds to precious metals.
Gold also received support from increased central bank inflows and strong ETF demand.
Weakness in the US dollar also sent support to gold, as a lower greenback makes metals cheaper for foreign currency holders. The US dollar index, which measures the greenback’s performance versus a basket of major peers, fell around 0.3% to 104.34 on Thursday.
Gold records highs again
Goldman Sachs raised its gold price outlook for 2025 to $3,450 an ounce, from its earlier projection of $3,330, citing better-than-expected ETF inflows.
Bank of America also raised its average price projection for gold, citing rising concerns from US trade policies. BofA analysts expect gold to trade at $3,063 an ounce by yearend, versus their previous outlook of $2,750 an ounce.
US gold futures added 1.3% to close at $3,061 an ounce on Thursday, after jumping to a record high of $3,071.30 earlier in the session.
Silver prices settled sharply higher at $35.083 an ounce, platinum rose to $1,000.6 and palladium settled at $985.10.
Gold price today
What to watch: Investors await the release of data on US PCE (personal consumption expenditures (1630 UAE Time) today, which would provide some insights into the Federal Reserve’s upcoming internet rate decision.
The core PCE price index, the Fed’s preferred gauge to measure inflation, had risen by 2.6% in January and is expected to rise by 2.7% year-over-year in February.