Gold surges past $3,200 to new record high as economic recession looms
Gold surges past $3,200 to new record high as economic recession looms
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Safe-haven gold gained nearly 2% and surpassed the $3,200 mark on Friday, spurred by a weaker dollar and recession concerns over the intensifying trade war between U.S. and China.
Spot gold XAU= was up 1.4% to $3,217.15 an ounce at 1211 GMT, after hitting a record high of $3,237.56 earlier in the session. Bullion is up nearly 6% so far this week.
U.S. gold futures GCcv1 climbed 1.8% to $3,234.90.
"Recession risks are mounting, bond yields are soaring, and the U.S. dollar continues to weaken – all factors reinforcing gold's role as a crisis hedge and inflation shield," said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.
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Beijing increased its tariffs on U.S. imports to 125% on Friday, hitting back against U.S. President Donald Trump's decision to hike duties on Chinese goods to 145%, raising the stakes in a trade war that threatens to upend global supply chains.
Global stocks fell and the dollar tumbled .DXY. A lower dollar makes greenback-priced bullion cheaper for overseas buyers. USD/MKTS/GLOB
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. GOL/ETF
"We believe gold has further to run - in the upside case, we target USD 3,400-3,500/oz over the months ahead," said UBS analyst Giovanni Staunovo.
Data on Thursday showed U.S. consumer prices unexpectedly fell in March. Focus was also on the U.S. producer price data due at 1230 GMT 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.
Spot silver XAG= gained 0.9% to $31.46 an ounce, while platinum XPT= shed 0.4% to $934.60. Palladium XPD= jumped 1.6% to $922.68.
Reporting by Anmol Choubey in Bengaluru; Editing by Ros Russell, Alison Williams and David Evans
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