Gold prices soared to an unprecedented high on Friday as investors flocked to the safe haven asset ahead of impending U.S. tariffs on China, Mexico, and Canada set to take effect this weekend.
Spot gold reached a new peak of $2,814.62 per ounce, marking a significant milestone for the precious metal, according to data from gold.org.
The surge in gold prices comes amid uncertainties in the global market. Major U.S. stock indexes tumbled on Friday, with the Dow Jones Industrial Average falling 0.7%, the S&P 500 declining 0.5%, and the Nasdaq Composite Index dropping 0.3%.
The U.S. dollar, however, showed strength, with the dollar index—which measures the greenback against a basket of currencies including the yen and the euro—rising 0.31% to 108.42.
Oil prices also climbed, buoyed by news that the U.S. administration plans to decrease proposed tariffs on Canadian oil. The U.S. West Texas Intermediate crude advanced to $73.48 per barrel, up 1%, while Brent crude futures for April rose 0.7% to $76.54 a barrel in extended trading.
Economists have raised concerns that the tariffs could increase the cost of imported materials used by U.S. manufacturers, leading to higher prices for American consumers and a reduction in global trade flows. Despite these warnings, President Donald Trump stated on Friday that “tariffs don’t cause inflation.”
The impending tariffs and market volatility have prompted investors to seek stability in gold, traditionally seen as a secure investment during times of economic uncertainty.
