Gold prices hit new high on fears of escalating trade tensions

Gold prices hit a record high of $3,077.49 an ounce on Friday on growing concerns over US President Donald Trump's new tariffs. A possible global trade confrontation has boosted demand for precious metals as safe-haven assets. The yellow metal rose by 1.7% over the week.

According to Canadian Prime Minister Mark Carney, the authorities are ready to retaliate with their own duties if the US imposes new tariffs on imported automobiles. This increased market tensions and caused stocks to fall.

There’s also growing concern over the US retaliatory tariffs set to take effect on April 2. These could fuel inflation, drag down economic growth, and escalate trade tensions.

Richmond Federal Reserve Bank President Thomas Barkin says current moderately restrictive monetary policy is the right call, given the high uncertainty and fast-shifting economic conditions in the US.

Investors are currently looking forward to the release of US personal consumption expenditures (PCE) figures. This data could shift expectations for interest rate cuts, especially after the central bank’s decision to leave the cost of borrowing steady, Reuters reports.