Gold Price News: Gold Hits All-Time High Amid Economic Worry

Gold prices hit another all-time high on Friday, topping the $3,000 an ounce level for the first time, as the precious metal continued to attract safe haven interest amid economic uncertainty.

Prices rallied as high as $3,005 an ounce on Friday before easing back slightly to below $2,985 an ounce later in the day.

Trade war maintains interest in gold

Gold prices took support from the latest twist in the emerging global trade war, as US President Donald Trump threatened to hit imports of European alcohol with 200% tariffs – a response to EU plans for a 50% tariff on imports of US-made whiskey.

Gold prices were already up around 14% so far this year. The deepening trade war has created uncertainty over the outlook for the global economy, driving interest in gold as a hedge against the risk of devaluation in other assets like stocks.

Serving to highlight those concerns, the Michigan consumer sentiment figures released Friday, which relate to the whole US economy, plunged to 57.9 in March, the lowest since November 2022 and well below forecasts of 63.1. Within the survey, expectations for the future soured across multiple areas of the economy, while inflation expectations surged.

Markets eye US rate cuts

For the moment though, US inflation readings came in below expectations last week, and this feeds into expectations that the US Fed will have greater leeway to cut interest rates further this year. Lower interest rates tend to support gold prices as they reduce the opportunity cost of holding non-interest-bearing assets.

Upcoming data/events

Traders will continue to monitor developments on the US policy side for further direction for gold prices, as well as wider geopolitical events. However, the markets will also be focused on a speech by ECB president Christine Lagarde on Monday for clues on the Euro Area economic outlook. Looking further ahead, Tuesday will bring Canadian inflation figures, followed by US industrial production numbers for the latest health check on the US economy.