Gold prices rose in European trade on Friday on track for the fourth straight profit, hitting a new record high above $3000.
The precious metal is on track for the largest weekly profit in 2025 on strong haven demand amid concerns about the global trade war, and with increasing odds of a Fed rate cut in June.
Prices
Gold prices rose 0.45% to $3001 an ounce, the highest on record, with a session-low at $2980.
On Thursday, gold rose 1.9%, the third profit in a row, marking the best profit in 2025 on haven demand.
Weekly Trades
Gold is up over 3% so far this week, on track for the second weekly profit in a row and the largest this year.
Trade Tensions
US President Donald Trump announced plans to escalate the global trade war through additional tariffs on European commodities.
The threat comes after Trump already imposed 25% tariffs on all steel and aluminum imports, triggering strong reactions from all major US partners.
European Commission President Ursula Von der Leyen announced plans to retaliate on a variety of US products starting April 2025, including bourbon and Harley Davidson products.
Trump reiterated his threats of reciprocal tariffs on the EU for any tariffs they announce.
US Rates
Recent data showed US consumer prices slowed down more than expected, bolstering the odds of a Fed rate cut in the summer.
According to the Fedwatch tool, the odds of a Fed 0.25% rate cut in March stood at just 3%.
However, the odds of such a cut in June are much higher at 80%.
SPDR
Gold holdings at the SPDR Gold Trust rose 7.17 tons yesterday to a total of 905.81 tons, the highest since February 27.
