By Rahul Paswan
(Reuters) – Gold prices hit their highest in nearly a week on Thursday after U.S. President Donald Trump announced new tariffs on auto imports starting next week, escalating global trade tensions that have been driving safe-haven demand for gold.
Spot gold was up 0.6% at $3,035.98 an ounce as of 0940 GMT, having hit its highest since March 21 earlier in the session. U.S. gold futures gained 0.8% to $3,045.
Gold, traditionally seen as a hedge against uncertainty and inflation, has risen more than 15% this year and hit an all-time peak of $3,057.21 on March 20.
“Policymaking coming from the U.S. is driving huge amounts of uncertainty and gold, being the defensive, anti-fragile asset, is largely going up because of those uncertainties,” Nitesh Shah, commodities strategist at WisdomTree, said.
Trump on Wednesday unveiled a 25% tariff on imported cars and light trucks, set to come into effect the day after he plans to announce reciprocal tariffs aimed at the countries responsible for the bulk of the U.S. trade deficit.
Traders are now looking to Friday’s U.S. personal consumption expenditures data, the Federal Reserve’s preferred inflation measure, to shed more light on the U.S. central bank’s rate cut path.
The Fed held its benchmark interest rate steady last week but indicated it could cut rates later this year. Non-yielding bullion tends to thrive in a low interest-rate environment.
“We maintain our bullish stance on gold, though a consolidation is possible after the recent swift rally towards $3,040/oz,” ANZ analysts said in a note.
Goldman Sachs on Wednesday raised its end-2025 gold price forecast to $3,300 per ounce from $3,100, citing stronger-than-expected ETF inflows and sustained central bank demand.
Spot silver steadied at $33.68 an ounce, platinum fell 0.2% to $973.20 and palladium shed 0.1% to $967.08.
(Reporting by Rahul Paswan in Bengaluru; Editing by Jan Harvey)
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