Gold prices have risen to a record high as investors seek safe havens amid worsening trade tensions and a stock market slump, prompted by US President Donald Trump's announcement of new tariffs on cars, Reuters reports.
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Rising prices and demand for safety
U.S. gold futures rose 1.3 percent to $3,061 an ounce, having peaked at $3,071.30. Silver rose 1.7 percent to $34.27, platinum gained 0.7 percent to $981 and palladium gained 0.3 percent to $971.25 an ounce.
The key driver is uncertainty over Trump's tariff policies, which is fueling demand for gold as a safe haven asset, according to Bob Haberkorn, senior market strategist at RJO Futures. Central bank purchases and activity in precious metals ETFs are also supporting the rally.
New tariffs and international reaction
Trump announced a 25% tariff on imported cars, which will come into effect after measures are determined against countries with a US trade deficit. Canada and France have already announced their readiness to respond with their own sanctions. This led to a fall in global stock indices and a decline in the value of shares of automakers.
Forecasts and other metals
Friday's release of U.S. consumer spending (PCE) data is expected to influence the Federal Reserve's rate decision, which will also weigh on the price of gold, a traditional hedge against volatility.
Goldman Sachs has updated its forecast, raising its target price for gold to $3,300 per ounce by the end of 2025.
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