Tariff uncertainty, rate cut bets help gold hit new highs

the price of gold rose on Thursday, hitting a historical high during the US session, breaking through $2960 per ounce, due to increased uncertainty over tariffs and market bets that the Federal Reserve will loosen monetary policy, keeping gold's attractiveness strong. Allegiance Gold's Chief Operating Officer Alex Ebkarian said, "Gold is in a long-term bull market. We expect the price of gold to trade between $3000 and $3200 this year." President Trump's latest trade policies have helped gold rise 12% so far this year, and in the midst of geopolitical and economic turmoil, gold is a favored asset for investors. In addition, data from the US Department of Labor showed that the PPI unexpectedly remained unchanged in February, while the CPI rose 0.2% last month after a 0.5% increase in January. Meanwhile, initial jobless claims in the US fell last week, but significant government spending cuts and the threat of an escalation in the trade war are destabilizing the labor market. The Federal Reserve may be forced to lower interest rates. A decrease in interest rates is seen as favorable for gold, as when yields fall, so do opportunity costs.