Gold prices hit record highs amid safe-haven demand

Gold bars

Gold prices rose on Friday, hitting an all-time high above $3,200 per ounce, driven by strong investor demand for safe-haven assets amid escalating trade tensions between the world’s two largest economies.

June gold futures leapt 1.85%, or $59, to $3,236.1 per ounce at 12:11 pm Makkah time, after hitting an all-time high of $3,246.8 earlier in the session.

Spot gold prices rose by 1.35%, or $42.86, to $3,216.85 per ounce. Silver futures for May delivery advanced 1.7% to $31.28 per ounce, while spot platinum prices edged up 0.15% to $938.47 per ounce.

The precious metal was further supported by a weakening US dollar, with the dollar index — which measures the greenback against a basket of six major currencies — falling by 1.4% to 99 points.

Trade tensions between the US and China intensified further, as Beijing raised tariffs on US imports to 125%, effective April 12.

This came after a White House official told CNBC yesterday that the cumulative tariff rate on China would be 145%, including prior 20% imposed by the US on fentanyl smuggling.