Gold hits record highs amid trade tensions

Gold prices rose today, reaching new record highs and were headed to a sixth consecutive weekly gain, driven by heightened safe-haven demand amid escalating global trade tensions and economic uncertainties. While President Trump delayed implementing tariffs on Mexico and Canada, he moved forward with tariffs on Chinese imports, which prompted China to announce retaliatory measures. His comments about the control of the Gaza Strip also fueled some concerns on the geopolitical side.

At the same time, the monetary policy landscape could continue to support gold as major central banks adopted more accommodative stances. The European Central Bank (ECB), Bank of England (BoE), and Bank of Canada (BoC) all implemented rate cuts. However, a more hawkish approach from the Federal Reserve could weigh on gold prices. In this regard, several Federal Reserve members have advocated for a more measured approach, citing uncertainties surrounding the impact of tariffs and other policy changes. Market participants are closely monitoring today’s Non-Farm Payroll (NFP) report for further insights into labor market conditions and their potential influence on the Federal Reserve’s policy outlook.