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Gold Hits Record High on Safe-Haven Demand Amid Tariff Threats

Reuters reports Gold hits record high on safe-haven demand amid tariff threats

Gold prices rose to hit a lifetime high on Thursday, sparked by safe-haven demand due to U.S. tariff threats, while the focus was also on a crucial inflation report for clues on the Federal Reserve's policy path.

"We are seeing keener uncertainty and anxiety about the Trump administration's new policies on trade and foreign policy … fresh technical buying coming in as prices are trending higher now in both gold and silver," said Jim Wyckoff, a senior market analyst at Kitco Metals.

Earlier this week, the White House said U.S. President Donald Trump planned to hit Mexico and Canada with steep tariffs on Saturday and was also considering some on China.

The U.S. gold market has been trading at a premium since the recent presidential election, the London Bullion Market Association said on Thursday, adding that the association has been closely liaising with the CME Group and U.S. authorities to monitor this trend.

Gold vs the Dollar

At the beginning of 2021, the US dollar index was 89. The US dollar index is now 108.