Gold surges near record highs

14 February 2025

Gold Surges Near Record Highs Amid Trade Policy Shifts and Economic Uncertainties

Market comments on behalf of Wael Makarem Financial Markets Strategists Lead at Exness

Gold prices continued their upward trajectory for the second consecutive day, hovering near historic highs as the precious metal headed toward its seventh straight weekly gain, driven by safe-haven demand amid U.S. trade policy developments. The momentum in gold markets was influenced by President Trump’s latest directive, which called for an examination of U.S. reciprocal tariff possibilities. The market’s reaction reflected growing concerns about potential escalations in global trade tensions.

Adding to the market dynamics, recent US economic indicators showed stronger-than-anticipated producer inflation data, following Wednesday’s higher-than-expected consumer inflation report. These inflation readings strengthened the prevailing market sentiment that the Federal Reserve could maintain current interest rates rather than implement cuts in the immediate future, which could weigh on gold.

Nevertheless, gold demonstrated remarkable resilience in this economic environment, drawing continued support from persistent trade-related uncertainties and central bank purchases. The precious metal’s appeal was further enhanced by a weakening US dollar.