Gold set for eighth weekly gain as tariff threats boost safe-haven demand

The Reserve Bank of India's latest stock of gold stood at 876.18 tonnes as of end December 2024 valued at USD 66.2 billion. (Representative Image: AP)

Gold prices remained steady on Friday, on track for their eighth straight weekly gain, supported by safe-haven inflows on concerns over U.S. President Donald Trump’s tariff threats.

Spot gold held its ground at $2,940.32 an ounce, as of 0251 GMT. Bullion has risen about 2% so far this week, and scaled an all-time high of $2,954.69 in the previous session.

U.S. gold futures remained unchanged at $2,956.10.

”The uncertainties are still there and gold still seems strong at this moment but in the near term we might see a pullback,” said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.

Earlier this week, Trump said he will announce fresh tariffs over the next month or sooner, adding lumber and forest products to previously announced plans to impose duties on imported cars, semiconductors and pharmaceuticals.

Since taking office on January 20, Trump has imposed an additional 10% tariff on Chinese imports and a 25% tariff on steel and aluminium.

U.S. Federal Reserve officials are taking note of what they see as rising inflationary risks and the uncertain impact of Trump’s trade, immigration, and other policies.

”Going forward, I consider it is appropriate to hold the federal funds rate in place for some time, given the balance of risks that we face right now,” Fed Governor Adriana Kugler said on Thursday.

Bullion is seen as a safeguard against geopolitical risks and inflation, but higher interest rates dampen the non-yielding asset’s appeal.

Meanwhile, gold exports in January from Switzerland rose year-on-year as supplies to the U.S. soared to the highest in at least 13 years.

Spot silver was up 0.3% at $33.01 an ounce and palladium firmed 0.2% to $978.84. Platinum fell 0.4% to $974.58.

Platinum has lost nearly 1% so far this week, while both silver and palladium have climbed more than 2% and 1%, respectively.