Gold prices add to record high amid fiscal, tariff concerns

Published 03/09/2025, 05:52
Updated 03/09/2025, 14:48

Investing.com - Gold prices added to its recent rally, hitting a new all-time peak as persistent concerns over global fiscal health and U.S. trade tariffs kept traders biased towards safe haven assets.

Spot gold had advanced by 0.5% to $3,551.10 an ounce, while gold futures for December were up 0.6% to $3,616.82/oz by 09:36 ET. Spot gold surpassed a previous record high notched earlier in the session.

The yellow metal, along with its precious and industrial peers, was sitting on strong gains so far this week. 

Among industrial metals, London copper futures briefly rose above $10,000 a ton for the first time since March, amid increasing optimism that demand in top importer China will improve.

Spot gold steadied at $3,534.61 an ounce, while gold futures for December rose 0.3% to $3,601.15/oz by 00:26 ET (04:26 GMT). Spot gold briefly hit a record high of $3,547.09/oz earlier in the session. 

Gold underpinned by fiscal concerns, tariff uncertainty

Gold’s gains this week initially came after a U.S. appeals court ruled that most of President Donald Trump’s trade tariffs were illegal, and that he could only keep them in place until mid-October.

Trump chided the ruling and said he will appeal with the Supreme Court. Still, any further rulings against Trump’s tariffs could force Washington into renegotiating recent trade deals, which heralds more disruption in global trade. 

Adding to the risk-off mood, global bond yields rose across the board on Tuesday amid mounting concerns over high debt levels in the developed world. But a sell-off in global bonds fueled some strength in the dollar, which in turn limited gold’s advance.

The dollar faces a major test later in the week with key nonfarm payrolls data for August. The print is likely to factor into the Federal Reserve’s plans to cut interest rates.

Fed fund futures were pricing in an over 90% chance the Fed will cut interest rates by 25 basis points later this month, CME’s FedWatch Tool showed. Growing bets on rate cuts had also boosted metal markets in recent weeks. 

Other precious metals moved higher, extending strong gains logged earlier in the week. Spot platinum rose 0.8% to $1,422.52/oz, while spot silver gained 0.4% to $41.0625/oz.

(Ambar Warrick contributed reporting.)

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