Gold prices recovered early losses to trade slightly higher above $3,121 an ounce on Friday, once again approaching record highs as safe-haven demand surged amid escalating trade tensions.
Gold rebounds, on track for fifth week of gains
Investor appetite for the precious metal intensified after China announced a sweeping 34% tariff on all U.S. imports, a direct retaliation against President Trump’s latest round of protectionist measures. The move rattled global markets, raising alarm over the stability of the international economy and stoking fears of sustained inflationary pressures.
Despite the deepening trade war, precious metals appeared resilient, with gold showing limited direct impact from Trump's reciprocal tariffs. Analysts suggest this reflects growing concerns among investors over currency volatility and equity market instability, prompting a rotation into traditionally safer assets like bullion. Gold inventories in COMEX warehouses across the U.S. have risen sharply in recent months, as traders and refiners seek to stockpile in anticipation of potential disruptions in cross-border shipments and increased logistical costs.
Uncertainty boosts the metal price
The metal’s consistent upward trajectory underscores broader anxieties about the durability of global supply chains and the long-term inflation outlook. For the week, gold is up about 1%, marking its fifth consecutive weekly gain—its longest winning streak since mid-2023. Market participants are now closely watching developments in Washington and Beijing, as well as central bank commentary, for signs of whether geopolitical friction will continue to fuel gold’s rally or prompt corrective moves in the coming weeks.
