Gold hits a new record as investors seek safe havens

Gold touched a caller grounds connected Thursday arsenic the US dollar declined — and investors focused connected the escalating commercialized warfare betwixt the US and China.

Gold (GC=F) futures surged arsenic overmuch arsenic 3% to interaction an intraday precocious of $3,193 per ounce earlier paring gains arsenic traders digested the latest improvement related to President Trump's tariff policy.

On Thursday the White House confirmed the precocious accrued tariffs connected Chinese goods present basal astatine 145%, not 125% arsenic antecedently stated. This follows Trump's announcement connected Wednesday of a impermanent reciprocal tariff intermission connected astir US trading partners, portion upping the levies connected China.

"Firstly, argumentation continues to beryllium made successful an utterly random and incoherent nature," wrote Michael Brown, elder probe strategist astatine Pepperstone, successful a enactment aboriginal connected Thursday morning. "This continued incoherence, I guess, should besides assistance support the bull lawsuit for golden comparatively coagulated too."

Gold futures are up much than 20% twelvemonth to date, making galore all-time highs on the mode amid commercialized uncertainty and accrued expectations that the Federal Reserve volition measurement successful with complaint cuts this year.

Read more: How to put successful golden successful 4 steps

The hazard of a recession oregon stagflation, a play of dilatory maturation with continued inflation, has driven up request for golden arsenic well.

"Persistent tariffs and argumentation unpredictability proceed to elevate the hazard of stagflation, further expanding the request for golden arsenic the champion safe-haven asset," wrote Sprott marketplace strategist Paul Wong successful a caller note.

The strategist noted golden could spell higher amid continued "US dollar weakness, further geopolitical escalation oregon an outright situation of assurance successful US governance."

Gold's rally comes arsenic cardinal banks person accelerated purchases and accrued inflows into carnal gold-backed exchange-traded funds (ETFs).

Ines Ferre is simply a Senior Business Reporter for Yahoo Finance. Follow her connected X astatine @ines_ferre.

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