Escalating trade tensions keep gold prices high

Gold is holding strong near the all-time high of $3,057 set on Thursday. The precious metal is heading for its third consecutive weekly gain.

Market tensions have increased on fears of an escalating trade confrontation, as the White House is poised to launch a new wave of tariffs on April 2. However, the exact scope of the restrictions has not yet been determined.

Since the beginning of the year, gold has surged 16%, setting 15 all-time highs in 2025. The rally continues due to heightened demand from investors seeking protection from global instability.

Additional support for gold is provided by the economic situation in the US. Despite existing home sales exceeding forecasts, market sentiment remains unstable. Investors are closely watching the Federal Reserve's monetary policy prospects. Earlier this month, the regulator left rates steady and signaled slower economic growth and higher inflation.

The bond market is still pricing in expectations of further Fed interest rate cuts in 2025, boosting the attractiveness of gold, which does not yield interest income, Bloomberg reports.