Gold price hits new peak as safe-haven appeal remains strong

Gold prices set another record on Thursday as fears of a global trade war sparked by US President Donald Trump kept demand for the safe-haven metal elevated.

Spot gold reached a new all-time high of $2,954.84 per ounce, before paring most of the gains, trading at $2,936.95 as of 11:00 a.m. ET. Meanwhile, US gold futures rose 0.6% to $2,955.50 in New York.

Gold’s latest rally follows Trump’s threat of fresh tariffs on lumber, cars, semiconductors and pharmaceuticals on Wednesday. Since taking office last month, he has already imposed a 10% tariff on Chinese imports and a 25% tariff on steel and aluminum.

“Ongoing trade tensions continue to stoke inflation and growth concerns, and therefore safe-haven interest in gold,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Outlook remains strong

The new record price comes amid speculation that the US government may revalue its bullion holdings from the price set in 1973 to current market prices. This idea has since been dismissed by US Treasury Secretary Scott Bessent.

“We’re seeing a bit of profit-taking, perhaps driven by Bessent’s comments. But mostly the market was looking for an excuse to book some profit following the latest run-up in prices,” said Ole Hansen, head of commodities strategy at Saxo Bank.

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“Overall, I do not see any change in the underlying support, which potentially could limit the loss,” he added.

The precious metal has so far risen 12% this year, setting multiple records along the way. It follows a 27% surge in 2024 amid mounting concerns over Trump’s consistently disruptive trade and geopolitical agendas.

Goldman Sachs Group this week raised its year-end target to $3,100 an ounce, saying that stronger-than-expected central bank buying would be a key driver for prices.

More support

There have also been growing fears that Trump could abandon American support for Ukraine after Russia invaded its neighbor three years ago.

A potential peace deal may briefly lower geopolitical tensions and could weigh on gold for the short term, Zaner Metals’ Grant said. He added that “the all-time high could hold for a number of weeks as there are sufficient fundamental factors that remain very supportive.”

Elsewhere, minutes of the Federal Reserve’s last policy meeting on Wednesday showed Trump’s initial policy proposals had stoked concerns over rising inflation, reinforcing the central bank’s stance to hold off on further rate cuts.

Customs data showed on Thursday that gold exports from Switzerland to the US rose year-on-year in January to the highest in at least 13 years.

(With files from Bloomberg and Reuters)