Gold is on the rise again
What’s happening: Gold recorded gains on Friday, breaching the key $3,000 resistance level.
What happened: Investors continued to buy the safe-haven asset amid economic and geopolitical uncertainties due to US President Donald Trump’s latest moves.
The yellow metal has surged around 14% year to date, with growing tensions between the US and its allies.
Why it matters: Gold has been on an upward trend amid concerns over the impact of tariffs imposed by the Trump administration.
Will gold continue to rise?
Although US President Donald Trump has managed to make Ukraine agree to a ceasefire deal, Russia is in the process of negotiating its wish-list.
Data released by the US on Friday showed the University of Michigan’s consumer sentiment index declining to 57.9 in March, from 64.7 in February. This marked the weakest reading in the index since November 2022.
Central banks around the world have continued to buy gold, lending support to prices. Goldman Sachs said that gold buying by central banks is expected to “remain structurally higher than before the freezing of Russian central bank reserves in 2022.”
Gold Price Today
Speculations of the US Federal Reserve cutting its benchmark interest rate by 25bps at its June meeting also sent gold prices higher.
Weakness in the US dollar lent support to gold prices, as a lower greenback makes metals cheaper for foreign currency holders. The US dollar index, which measures the greenback’s performance versus a basket of major peers, fell around 0.1% to 103.74 on Friday.
US gold futures climbed 0.3% to settle at $3,001.10 an ounce on Friday.
In other metals trading, silver closed higher at $34.433, while copper fell to $4.8960. Platinum settled at $1,013.2 and palladium at $973.40.
The rise of gold and crossing the barrier
What to watch: Investors will continue monitoring Trump’s tariffs announcements, which are expected to significantly impact gold prices ahead. The performance of US dollar will also remain in focus.