Gold Nears Record High as Trade Tensions Escalate
Gold surged toward another record as the U.S. dollar weakened after President Trump ordered a review of reciprocal tariffs on trading partners.
Trump's directive to the U.S. Trade Representative and Commerce Secretary could result in new levies on a country-by-country basis, potentially disrupting global trade dynamics. The prospect of wider trade measures has stoked safe-haven demand for gold.
Bullion gained 0.8% to $2,927.17 an ounce, just shy of its all-time high set earlier this week. Gold's upward trajectory reflects the perceived impact of the Trump administration's trade and geopolitical policies.
President Trump's agreement with Russian President Vladimir Putin to negotiate an end to the Ukraine conflict boosted the euro and weighed on the dollar, further supporting gold. Central banks have also been increasing their gold holdings, and bullion-backed ETFs have been expanding.
Spot gold climbed 0.8% to $2,926.52 an ounce in New York trading, while the Bloomberg Dollar Spot Index fell 0.6%. Silver, platinum, and palladium also advanced.