Gold set for eighth weekly gain as tariff risks fuel safe-haven demand
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Gold holds near record highs despite slight pullback
Spot gold (XAU/USD) edged lower 0.4% to $2,927.89 early friday but remains on track for an eighth consecutive weekly gain, having surged to an all-time high of $2,954.69 on thursday. U.S. gold futures slipped 0.5% to $2,942, reflecting some profit-taking after recent strong gains.
Tariff threats and inflation fears drive safe-haven demand
Gold’s resilience continues as Donald Trump’s escalating tariff threats reinforce its appeal as a hedge against trade uncertainty and inflation. Since taking office, Trump has imposed a 10% tariff on chinese imports and a 25% tariff on steel and aluminum, with more duties on autos, semiconductors, and pharmaceuticals expected soon.
Fed cautious on inflation, rate cuts remain uncertain
U.S. federal reserve officials are increasingly concerned about inflation risks, with Fed governor Adriana Kugler signaling that the federal funds rate is likely to remain steady for some time. While higher rates typically weigh on gold, the ongoing geopolitical risks and uncertainty surrounding trade policy continue to drive investor demand for bullion as a safe-haven asset.
Broader precious metals performance
Silver (xagusd1!) fell 0.4% to $32.79 but remains up 2% for the week; palladium (xpzusd1!) lost 0.8% to $969.84, still posting a weekly gain of over 1%; platinum (pl1!) declined 0.8% to $970.28, down nearly 1% for the week;
Trading outlook
Gold is consolidating near record highs, with key resistance at $2,960-$3,000 if prices break above this psychological level, momentum could push gold into price discovery mode toward $3,050-$3,100. Support sits near $2,900, where dip buyers may re-enter the market given the strong bullish trend.
Spot gold (XAU/USD) edged lower 0.4% to $2,927.89 early friday but remains on track for an eighth consecutive weekly gain, having surged to an all-time high of $2,954.69 on thursday. U.S. gold futures slipped 0.5% to $2,942, reflecting some profit-taking after recent strong gains.
Tariff threats and inflation fears drive safe-haven demand
Gold’s resilience continues as Donald Trump’s escalating tariff threats reinforce its appeal as a hedge against trade uncertainty and inflation. Since taking office, Trump has imposed a 10% tariff on chinese imports and a 25% tariff on steel and aluminum, with more duties on autos, semiconductors, and pharmaceuticals expected soon.
Fed cautious on inflation, rate cuts remain uncertain
U.S. federal reserve officials are increasingly concerned about inflation risks, with Fed governor Adriana Kugler signaling that the federal funds rate is likely to remain steady for some time. While higher rates typically weigh on gold, the ongoing geopolitical risks and uncertainty surrounding trade policy continue to drive investor demand for bullion as a safe-haven asset.
Broader precious metals performance
Silver (xagusd1!) fell 0.4% to $32.79 but remains up 2% for the week; palladium (xpzusd1!) lost 0.8% to $969.84, still posting a weekly gain of over 1%; platinum (pl1!) declined 0.8% to $970.28, down nearly 1% for the week;
Trading outlook
Gold is consolidating near record highs, with key resistance at $2,960-$3,000 if prices break above this psychological level, momentum could push gold into price discovery mode toward $3,050-$3,100. Support sits near $2,900, where dip buyers may re-enter the market given the strong bullish trend.