Gold prices soared to near three-month highs on Friday and were on track for a fourth straight weekly gain as uncertainty about U.S. President Donald Trump’s trade plans took the wind out of the dollar’s sail, boosting demand for safe-haven bullion.
Spot gold jumped 0.8% to $2,774.49 per ounce as of 0255 GMT and has gained more than 2% so far this week. Earlier in the day, prices rose to $2,777.10, the highest since Oct. 31, when they hit a record $2,790.15.
U.S. gold futures climbed 0.6% to $2,781.80.
The dollar is down more than 1% on the week, headed for its worst weekly fall in two months, making bullion less expensive for foreign buyers.
“The dollar slipped after Trump spoke against market expectations … This drop comes as he has refrained from implementing aggressive tariffs following his inauguration,” said Jigar Trivedi, senior analyst at Reliance Securities.
Trump called for an immediate drop in interest rates and provided no clarity on tariffs, while investors awaited a round of policy announcements from global central banks.
The lack of clarity about future policies has led market participants flocking to safe-haven assets such as gold to hedge against volatility.
Elsewhere, the Bank of Japan is widely expected to raise rates at the end of a two-day meeting on Friday. Rate decisions from the U.S. Federal Reserve and European Central Bank (ECB) are scheduled for next Wednesday and Thursday, respectively.
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Traders see almost no chance of a Fed rate hike, according to the CME Group’s FedWatch Tool. Higher rates dampen the appeal of the non-yielding bullion.
Next week, “There is a possibility of gold hitting an all-time high … and the outlook remains positive,” Trivedi said.
Spot silver was up 1.1% at $30.78 per ounce, palladium gained 0.6% to $997 and platinum rose 1% to 952.75.
All of the three metals were poised for weekly gains.
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