Market News

(Bloomberg) — Gold (GC=F) held just below a record high as a fresh round of tariff threats from US President Donald Trump, coupled with mounting geopolitical intrigue, underscored the metal’s haven appeal even after a blistering rally.

Bullion traded little changed near $2,935 an ounce — a few dollars shy of the peak set last week — after rising more than 1% in the previous session. Late Tuesday, the US president pledged to impose tariffs on automobile, semiconductor and pharmaceutical imports of around 25%.

On the geopolitical front, Washington has pressed ahead with a drive to seek an end to the war in Ukraine, unsettling European allies and Kyiv, after a high-profile meeting in Saudi Arabia with Moscow’s representatives.

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 metal. That lift has augmented support for bullion that’s come from concerted central-bank buying and, in the opening weeks of the year, limited inflows into bullion-backed exchange-traded funds.

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 $2,935.02 an ounce at 3:57 p.m. in Singapore. The Bloomberg Dollar Spot Index was steady, after rising on Tuesday. Silver traded near $33 an ounce, up 14% this year. Platinum and palladium fell.

Elsewhere, Federal Reserve Bank of San Francisco President Mary Daly said monetary policy needs to remain restrictive until there’s more progress on inflation, which she expects will continue declining over time. Lower borrowing costs tend to benefit gold, as it doesn’t pay interest.