• Gold hit $2,994, nearing a record $3,000 level
• Trade tensions drive demand for safe-haven gold
• Lower US CPI gives Fed more room to cut
• Strong ETF and central banks demand boost prices

Gold hit an all-time high on Friday, briefly touching $2,994 an ounce and heading for its second consecutive week of gains.

The surge occurred amid escalating trade tensions and growing anticipation of Federal Reserve rate cuts following a lower-than-expected US CPI report.
 

The escalating US-EU trade dispute, marked by retaliatory tariffs, has fueled market uncertainty, increasing demand for gold as a safe-haven asset.

Recent US PPI and CPI data indicate easing inflation, raising expectations of Fed rate cuts, which enhance zero yielding gold’s appeal.

Latest US CPI data:

• Core CPI MoM: 0.2% – actual, 0.3% – expected, 0.4% – previous
• Headline CPI MoM: 0.2% – actual, 0.3% – expected, 0.5% – previous
• PPI MoM: 0.0% – actual, 0.3% – expected, 0.6% – previous

Strong ETF demand and sustained central bank buying, particularly from China, further support gold’s rally.

As economic and geopolitical uncertainties persist, gold remains a crucial hedge against volatility and inflation, reinforcing its status as a premier safe-haven asset.

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