(Bloomberg) — Gold held just below a new all-time high as a fresh round of tariff threats from US President Donald Trump, coupled with mounting geopolitical tension, underscored the metal’s haven appeal even after a blistering rally.
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Bullion traded little changed near $2,935 an ounce after earlier hitting a fresh record high of $2,947.01. Late Tuesday, the US president pledged to impose tariffs on automobile, semiconductor and pharmaceutical imports of around 25%.
On the geopolitical front, tension escalated a day after senior officials from the US and Russia met for a first round of talks over the war in Ukraine, leaving Ukraine President Volodymyr Zelenskiy isolated and compounding fears that a deal to resolve the war will be reached without Kyiv’s involvement.
Gold has hit successive records this year, after climbing by more than a quarter in 2024, as Trump’s consistently disruptive trade and geopolitical agendas fan demand for the precious metal. That has augmented support for bullion that’s come from concerted central-bank buying.
Earlier this week, Goldman Sachs Group Inc. raised its year-end target for gold to $3,100 an ounce, saying that stronger-than-expected central-bank buying would be a key driver. Should broader uncertainty over economic policy persist, including on tariffs, bullion could hit $3,300, it said.
Spot gold was little changed at $2,936.34 an ounce as of 10:44 a.m. in New York. The Bloomberg Dollar Spot Index was flat. Silver, platinum and palladium fell.
–With assistance from Jack Ryan.
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