Gold hits new record as traders seek safety from Trump tariffs anxiety

Gold rose to a fresh record high as worries about the impact of tariffs on the global economy continued pushing investors to seek safety in the precious metal even after easing US inflation data.

Bullion advanced as much as 3 per cent to $US3175.07 an ounce, surpassing a previous peak reached earlier in the month.

Underlying US inflation cooled broadly in March, indicating some relief for consumers prior to widespread tariffs that risk contributing to price pressures.

US equities fell after the biggest buying in years while bonds rebounded after the print. Traders priced in expectations for three interest rate cuts from the US Federal Reserve in the remainder of the year, with a chance of a fourth. Lower rates typically benefit gold as it pays no interest.

Risks and uncertainty remained after US President Donald Trump’s 90-day tariff pause on higher tariffs that hit dozens of trade partners. On Thursday, Mr Trump’s tariffs on Chinese imports are now at least 145 per cent, which includes both a 125 per cent rate that covers “reciprocal” duties as well as levies imposed on China for retaliating against US import taxes, according to a White House memo.

The latest development fuelled scepticism that trade talks will be wrapped up in a timely manner, despite the White House Economic Council director Kevin Hassett saying the US is “well advanced” in its discussions with economic partners.

Financial markets have been gripped with the Trump administration’s constant back-and-forth tariff plan, trying to find direction and certainty. That has been supporting bullion given its haven status. Gold’s 21 per cent rally this year has also been boosted by hopes for more Federal Reserve easing and central bank buying.

“We remain quite positive for gold,” Dominic Schnider, head of commodities and Asia Pacific currencies at UBS Global Wealth Management, said on Bloomberg Television. “The next step is going to be, at some point, the Fed coming in — and that gives the next leg up for gold.”

Spot gold gained 2.8 per cent to $US3168.65 overnight in New York. The Bloomberg Dollar Spot Index fell for a third day. Silver was little changed, while platinum advanced. Palladium fell.

Bloomberg