Gold prices hit a record high on Friday, briefly touching the $2,800 mark, as market participants rushed to seek refuge in the asset after US President Donald Trump reiterated his tariff threats.
Spot gold was steady at $2,795.52 an ounce at 11:18 GMT, after hitting an all-time high of $2,800.99 earlier in the session. Prices rose more than 6% on the month and 1% on the week.
US gold futures were virtually unchanged, trading at $2,820.10.
“The rally could continue as long as there is uncertainty in the market. Much of the current uncertainty stems from not knowing whether tariffs will be imposed and how,” said WisdomTree commodity strategist Nitesh Shah.
Trump reiterated on Thursday that the US will impose a 25% tariff on imports from Mexico and Canada and said he was still considering new tariffs on Chinese products.
Gold bullion is a preferred asset in times of economic and geopolitical turmoil.
“We believe central bank purchases are the strongest structural force in the gold market, supporting our constructive long-term view,” said Carsten Menke, an analyst at Julius Baer.
Market attention will now turn to the US personal consumption expenditure price index report for December, due at 1330 GMT, the Federal Reserve's preferred inflation gauge, which will be released later in the day. Earlier this week, Federal Reserve Chair Jerome Powell said inflation and employment data would determine when it would be appropriate to implement easing measures.
Thursday's data showed that US economic growth slowed in the fourth quarter, but consumer spending rose at its fastest pace in nearly two years.