London
CNN
–
Friday's history reached $3,000 for the first time, boosted by the demand for safe inventory assets as investors worry about President Donald Trump's tariffs and geopolitics.
Prices reach a record $3,005 and then cut those profits to trade at $2,994 from 9:04am.
Jason Hollands, managing director of UK wealth manager Evelyn Partners, described yellow metal as a “panic asset of choice,” saying the latest price rise reflects “the current extreme uncertainty from the Trump administration's volatile and aggressive approach and corresponding retaliation measures.”
On Wednesday, 25% tariffs on all steel and aluminum imported into the US became the latest Trump 2.0 mandate, which triggers rapid action from Canada and the European Union.
Trump then raised Ante significantly on Thursday, threatening to slap a 200% tariff on alcoholic beverages from the EU unless he cancels the 50% tariff imposed on the US spirit the day before.
His administration's trade policy is also characterized by flip-floping and delays, and as a result, the resulting uncertainty has paralyzed business and is not sure whether it is employment and investment.
It all summed up with growing concerns about the possibility of economic slowdowns worldwide.
The war in Ukraine is another factor in the reign of gold.
“Russia's refusal to the 30-day US-inferred ceasefire in Ukraine rekindled geopolitical instability,” said Viktoria Kuszak, research analyst at trading company Sucden Financial.
On Thursday, Russian President Vladimir Putin questioned the US-brokered proposal and demanded Kiev's concession despite saying he supported a ceasefire in theory.
The wars drawn up have supported gold prices in the long term.
Trevor Greetham, a senior investor at Royal London Asset Management, said prices have risen by around 60% since the 2022 invasion of Ukraine. “Central banks, including the People's Bank of China, are not at risk of seizing foreign reserves, as happened to Russia, but have been added to their (gold) stockpile,” he said.
Yet another tailwind in gold prices is the recent weakening of the dollar, according to Hollands of Evelyn Partners. Gold is priced in dollars, so weak greenbacks have made metals more attractive to non-US buyers.
