BENGALURU: Gold prices scaled a record peak above the crucial US$3,000-mark (RM13,326.90) yesterday for the second time in a week, as investors sought cover from economic concerns fuelled by US President Donald Trump’s tariff policies.
Spot gold rose 0.2% to US$3,006.88 an ounce as of 0525 GMT after hitting a record high of US$3,016.92 per ounce earlier in the session.
Gold climbed above the US$3,000/oz milestone for the first time on Friday.
US gold futures gained 0.4% to US$3,017.20.
“Gold is moving higher on account of a weaker dollar and continued tariff uncertainties… With gold at record highs there is a lot of technical and chart based buying that kicks in since there is no resistance apparent on the charts,” said Marex analyst Edward Meir.
The US dollar index wallowed near a four-month trough, making gold cheaper for overseas buyers.
Historically considered a hedge against geopolitical instability, gold has risen more than 14% year-to-date. Since Trump took office in January, gold has hit a record high 14 times as trade tensions boosted safe-haven demand.
Trump has floated plans for a series of US tariffs, from a flat 25% on steel and aluminium which came into effect in February to reciprocal and sectoral tariffs that he said will be imposed on April 2.
ANZ raised their up to 3-month gold price forecast to US$3,100/oz and 6-month forecast to US$3,200/oz, citing escalating geopolitical and trade tensions, easing monetary policy and strong central bank buying.
New economic projections from Federal Reserve officials this week will provide the most tangible evidence yet of the likely impact of Trump administration policies.
Forecasters have marked down their expectations for US growth this year, raised concerns about a potential recession, and expect increased inflation.
“Israeli air strikes may also see tensions flare in the Middle East again and that could add to the litany of drivers pushing gold higher,” Capital.com’s financial market analyst Kyle Rodda said.
Spot silver firmed 0.1% to US$33.85 an ounce, platinum added 0.2% to US$1,002.50 and palladium rose 0.4% to US$968.96. – Reuters
