Gold prices held steady above $3,750 per ounce on Friday, remaining close to the all-time high of $3,790. This stability persists despite a resurgence in the value of the dollar and an uptick in Treasury yields, as investors seek the relative safety of gold amidst speculation about a potential tightening stance from the Federal Reserve. The U.S. administration has reignited anxieties regarding restrictive trade policies by planning to enact strict tariffs on patented pharmaceuticals and various medical equipment. Moreover, gold's appeal has been bolstered by the U.S.'s more assertive position towards Russia, including statements insinuating that Ukraine could reclaim territory occupied since Russia's invasion.
Internationally, the demand for gold continues to rise as investors express concerns over a surge in U.S. Treasury debt and potential threats to the Federal Reserve's independence, which could undermine confidence in the dollar. Consequently, the People's Bank of China has been increasing its gold purchases and offering custodial services for foreign gold holders. However, a rise in U.S. personal spending and income, coupled with a decrease in unemployment claims, has temporarily slowed gold's upward momentum.
