Gold hits record high on safe-haven demand amid tariff threats

The Fed, meanwhile, held rates steady on Wednesday, in line with expectations, with Chair Jerome Powell saying there would be no rush to cut them again.

Gold prices rose to hit a lifetime high on Thursday, sparked by safe-haven demand due to U.S. tariff threats, while the focus was also on a crucial inflation report for clues on the Federal Reserve's policy path.

Spot gold was up 1.4% at $2,796.15 per ounce, as of 11:07 a.m. (1603 GMT), hitting its record high level at $2798.24 earlier in the session. U.S. gold futures climbed 2% to $2,824.

"We are seeing keener uncertainty and anxiety about the Trump administration's new policies on trade and foreign policy ... fresh technical buying coming in as prices are trending higher now in both gold and silver," said Jim Wyckoff, a senior market analyst at Kitco Metals.

Earlier this week, the White House said U.S. president Donald Trump plans to hit Mexico and Canada with steep tariffs on Saturday while also considering some on China.

The dollar fell 0.2%, making gold less expensive for other currency holders, while yield on the 10-year U.S. Treasury notes fell to its lowest level in over a month. [USD/] [US/]

"Gold is shining as a safe haven asset, with investors seeking shelter to weather the storm of unpredictability," said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

The Fed, meanwhile, held rates steady on Wednesday, in line with expectations, with Chair Jerome Powell saying there would be no rush to cut them again.

Data showed that U.S. economic growth slowed in the fourth quarter, but robust domestic demand will probably keep the Fed on a slow interest rate cut path.

Investors now await the December U.S. personal consumption expenditures (PCE) price index report on Friday.

Spot silver was up 2.2% at $31.48 per ounce.

"The Platinum and Palladium market I think are seeing spillover buying interest from the rallying gold and silver markets and that's mainly what's driving those markets higher," Wyckoff added.

Platinum added 2.1% to $965.95, and palladium gained 2.3% to $984.50.