Gold has hit a new high of $2,990 per ounce as the asset’s price increased further, beating the high set during the week. The new development is coming after a report showed that Trump’s tariffs and inflation fears drove investors to safe-haven assets.
Gold’s rally was fueled by US data which showed stagnation in wholesale inflation in February, reinforcing prospects for an eased monetary policy by the Federal Reserve.
Gold hits new high as investors move to safe investments
Historically, Gold has always benefitted from a lower borrowing cost because it offers no yield on its own. Meanwhile, US government debt attracted heavy demand, pushing 10- and 30-year Treasury yields to fresh monthly peaks.
Equities also suffered from concerns over American growth, as the S&P 500 slipped into a 10% correction on Thursday, erasing about $5 trillion in market value since its February peak. The anxiety was also compounded when Trump reiterated plans to hit the wine industry with a 200% tariff.
Overall, Banks have become bullish on gold. The Macquarie Group predicted that its prejudice could surge up to $3,500 per ounce in the 2nd quarter. BNP Paribas SA expects that the average price of gold will remain above $3,000.