Gold rises above $3,200 on safe-haven demand

On Friday, gold broke through the significant threshold of $3,200 per ounce for the first time, reaching a new all-time high. This surge was boosted by the escalating trade confrontation which led investors to seek safe-haven assets.

During the morning session, the price of gold peaked at a record $3,220.10, representing a gain of over 5% for the week.

Major stock indices declined after US President Donald Trump raised tariffs on Chinese imports to 145%. At the same time, he postponed previously planned duties on several countries for 90 days. In response, China escalated its tariffs on US goods, sparking fears rates could exceed the current 84% level.

Alongside the trade tensions, strong demand from central banks, anticipated interest rate cuts in the US, and geopolitical instability in Europe and the Middle East have all contributed to the surge in gold prices.

Although US consumer prices experienced an unexpected decrease in March, inflation risks continue to loom.

Traders increasingly bet on Fed rate cuts starting as early as June, according to reports from Reuters.