Gold prices hit new record high on rising demand

Gold prices hit a new record high on Thursday, driven by rising demand for safe-haven investments amid investor concerns over potential U.S. tariffs and awaiting a key inflation report for clues on future Federal Reserve interest rate moves.

According to Reuters, spot gold prices rose 1.4% to $2,794.11 an ounce at 18:30 GMT, after hitting an all-time high of $2,798.24 earlier in the session.

US gold futures rose 1.9% to $2,846.30 an ounce.

“We are seeing a lot of uncertainty and anxiety over the Trump administration’s new trade and foreign policy policies… There is fresh buying going on amid rising gold and silver prices right now,” said Jim Wyckoff, chief market analyst at Kitco Metals.

Trump plans to impose hefty tariffs on Mexico and Canada on Saturday, Feb. 1, and is also considering tariffs on China, the White House said earlier this week. The dollar fell 0.2 percent, making gold more attractive and less expensive for holders of other currencies, while the yield on the 10-year U.S. Treasury note fell to its lowest level in more than a month.