Tariff uncertainty, rate cut bets fuel gold to new highs

Gold prices rose on Thursday, hitting record highs again in the U.S. session, topping $2,960 an ounce, as rising tariff uncertainty and market bets that the Federal Reserve will loosen monetary policy kept gold's appeal strong.Alex Ebkarian, chief operating officer at Allegiance Gold, said, ‘Gold is in a long-term bull market. We expect gold prices to trade between $3,000 and $3,200 this year.’ US President Donald Trump's latest trade policies have helped gold gain 12% so far this year, making it a favoured asset for investors amid geopolitical and economic turmoil. In addition, data from the US Department of Labour showed that the PPI was surprisingly unchanged in February, while the CPI rose 0.2% last month after accelerating 0.5% in January. Meanwhile, US initial jobless claims fell last week, but sharp government spending cuts and an escalating trade war threaten labour market stability. The Federal Reserve may be forced to lower interest rates. Falling interest rates are seen as good for gold because when yields fall, so do opportunity costs.