Gold hits $3,000 on trade tensions and Fed rate cut hopes

Gold hit a record high of $3,000 per ounce on Friday, driven by risk aversion and growing Federal Reserve rate cut expectations.

Gold hits $3,000 on trade tensions and Fed rate cut hopes

This surge came amid the latest escalation in US President Donald Trump’s trade conflict. He threatened a 200% tariff on European wine and other alcoholic beverages following the EU's imposition of a 50% tax on American whiskey exports. Additionally, recent PPI and CPI data indicated a slowdown in price pressures for February, providing the Fed with more flexibility to lower rates and boosting the appeal of non-yielding gold.

Gold rallies on strong demand and central bank buys

The metal's rally is further supported by strong ETF demand and continued central bank purchases, with China increasing its buying for the fourth month. For the week, gold is on track to gain nearly 3%.