Gold surges past USD 2,800 as tariff threats reignite record rally

Gold prices surpassed the key USD 2,800 mark for the first time on Friday, fuelled by a rush to safety following US President Donald Trump’s tariff threats, which heightened concerns about global economic growth and inflationary pressures.

Spot gold rose 0.3% to USD 2,801.29 per ounce by 01:41 p.m. ET (1841 GMT), after hitting a record peak of USD 2,817.23 earlier in the session.

US gold futures settled 0.4% lower at USD 2,835, trading a premium to spot gold rates.

“There’s a lot of uncertainty out there right now and also wait-and-see attitude on the geopolitical stage with tariffs,” said Bob Haberkorn, senior market strategist at RJO Futures.

Trump has set a Saturday deadline to slap a 25% tariff on imports from Canada and Mexico and said he was still considering new tariffs on Chinese goods.

Bullion, a preferred asset during times of economic and geopolitical turmoil, is on track to record its best monthly performance since March 2024, rising nearly 7% so far. The metal surpassed multiple record peaks last year.

Additionally, “the mixed signals we’re getting from the Fed and the Trump administration right now is causing uncertainty in the market … Trump wants to cut interest rates, while the Fed wants to hold them steady,” Haberkorn added.

Earlier this week, Federal Reserve Chair Jerome Powell said there would be no rush to cut interest rates again, contradicting Trump’s earlier calls saying he wants borrowing costs to be lowered.

US prices increased in December while consumer spending surged, suggesting that the Fed could delay cutting interest rates for some time this year.

Among other metals, spot silver fell 0.8% to USD 31.42 after hitting an over one-month high on Thursday.

“We expect this strength in (silver) prices to attract subsequent discretionary trader interest, given this cohort remained nearly flat as of last week, with gold printing new all-time highs and the (gold-to-silver) ratio remaining at elevated levels,” TD Securities said in a note.

Platinum firmed 1% to USD 975.80, while palladium rose 2.2% to USD 1,011.

All three metals were headed for monthly gains.

(Reporting by Anmol Choubey and Swati Verma in Bengaluru; Editing by Shailesh Kuber, Tasim Zahid, and Mohammed Safi Shamsi)