Gold surpassed the key $3,200 U.S. mark for the first time on Friday, spurred by a weaker dollar and economic concerns due to an intensifying trade war.
Spot gold jumped over 1.3% to $3,216.27 U.S. an ounce after hitting a record high of $3,219.84 earlier in the session. Bullion is up over 5% so far this week. U.S. gold futures climbed 1.7% to $3,230.60.
U.S. President Donald Trump suddenly paused his “reciprocal” tariffs on other countries hours after they came into effect earlier this week, but he ratcheted up duties on Chinese imports as punishment for Beijing’s initial move to retaliate.
Global stocks fell and the dollar index sank to a decade low. A lower dollar makes greenback-priced bullion cheaper for overseas buyers.
Spot gold has continued its blazing rally from the last year, hitting multiple record highs and gaining nearly 21% so far this year driven by uncertainties, central bank demand and increased flows into gold-backed exchange-traded funds.
Focus was also on the U.S. producer price data due at 8:30 EDT T for insights into the Federal Reserve’s monetary policy trajectory.
Traders now bet that the Fed will resume cutting rates in June and probably reduce by a full percentage point by the end of 2025.
