Gold climbed above $2,930 per ounce on Wednesday, hovering just below last week’s all-time high of $2,940, as mounting global uncertainties and escalating trade tensions bolstered safe-haven demand.
Gold hovers near record levels
The latest surge came after U.S. President Donald Trump announced plans to impose 25% tariffs on automobile imports, alongside similar duties on semiconductors and pharmaceuticals. The move, set to potentially take effect by April 2 following cabinet recommendations, reignited fears of a global trade war, prompting investors to flock to gold as a hedge against economic instability.
Geopolitical risks further supported bullion prices. The White House recently floated the idea of lifting sanctions on Russia as part of ongoing diplomatic negotiations — a suggestion that rattled European allies and Kyiv, raising concerns about shifting alliances and the broader implications for global security. The uncertainty surrounding U.S. foreign policy has added another layer of anxiety to already volatile markets.
US inflation progress remains uneven
Meanwhile, in the monetary sphere, San Francisco Fed President Mary Daly emphasized that inflation’s progress remains uneven, reinforcing the Federal Reserve's cautious stance on rate cuts. Her remarks echoed broader hawkish signals from other Fed officials, suggesting interest rates could stay elevated for longer than some investors had hoped — a factor that typically pressures non-yielding assets like gold but appears to be overshadowed by the current risk-off sentiment.
Demand details
On the physical demand side, gold shipments from Singapore to the U.S. surged to a three-year high in January, reflecting disruptions in global bullion trading caused by pricing gaps and ongoing supply chain issues. With market volatility persisting and investors closely watching upcoming economic data and geopolitical developments, gold's appeal as a safe-haven asset remains firmly intact.
