• Gold trades near record high of $2,942.68
• Investors seek safety amid trade tensions
• US plans retaliatory tariffs, escalating global tensions
• Higher-than-expected US CPI fuels inflation concerns
• Higher for longer rates may pressure zero-yielding gold

Gold is trading near a record high ($2,942.68) as investors flocked to safe-haven assets amid escalating trade tensions and broader economic uncertainty.
 

Earlier, the White House announced the possibility of retaliatory tariffs that could be introduced as early as tomorrow (02/13/25). According to Trump’s statement, these tariffs would target those who impose duties on goods imported from the US.

This announcement comes shortly after the United States imposed a 25% tariff on aluminum and steel imports, as well as (currently suspended) tariffs on China, Canada and Mexico (10% and 25%, respectively).

Adding to the uncertainty, yesterday's US CPI reading came in higher than expected, reinforcing the potential for higher for longer interest rates.

US CPI reading (02/12/25)

• MoM Core Inflation: 0.4% – actual vs 0.3% – expected
• YoY Core Inflation: 3.3% – actual vs 3.1% – expected
• MoM Inflation: 0.5% – expected vs 0.3% – expected
• YoY Inflation: 3.0% – expected vs 2.9% – expected

Higher for longer rates could put pressure on zero-yielding gold.

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