Gold climbed nearly 1% on Friday to trade above $5,220 per ounce, testing a two‑month high as markets weighed increasingly aggressive U.S. trade measures against persistent inflation pressures. The metal continues to draw strong safe-haven inflows after the administration invoked Section 122 to impose a 10% global tariff, with U.S. Trade Representative Jamieson Greer indicating that the levy could be raised to 15% in the wake of the recent Supreme Court ruling. This protectionist pivot—combined with stalled U.S.–Iran nuclear negotiations in Geneva and reports of a U.S. Embassy departure advisory in Israel—has significantly reinforced gold’s role as a systemic risk hedge.
On the data side, core producer prices for January rose 0.8%, the sharpest monthly gain since mid‑2025. While the stronger‑than‑expected print bolstered the U.S. Dollar and pushed market expectations for the first fully priced Federal Reserve rate cut back to July, gold prices remained notably resilient. Additional support came from a pronounced rotation out of AI‑centric equities and into long‑duration U.S. Treasuries, driving the 10‑year yield to a four‑month low and further underpinning bullion.
