Gold Shines Amid Economic Slowdown and Global Tariff Drama
Gold prices surged over 1% on Friday, spurred by lower-than-expected U.S. GDP data and new global tariffs announced by President Trump after a Supreme Court ruling. Market uncertainty, inflation concerns, and potential interest rate cuts are driving gold's appeal as a safe-haven asset amid geopolitical tensions.
Gold experienced a significant increase on Friday, climbing more than 1%, after weaker-than-anticipated U.S. GDP figures and President Trump's announcement of new global tariffs. This comes on the heels of a Supreme Court decision regarding Trump's tariffs.
As investors analyzed the developments, spot gold rose by 1.5% to $5,071.48 per ounce, while U.S. gold futures settled 1.7% higher. Trump's imposition of a 10% global tariff, despite a Supreme Court ruling against broad tariffs under the International Emergency Economic Powers Act, has contributed to market volatility.
The U.S. economy's growth slowed to a 1.4% annual rate in Q4, missing forecasts, amid a government shutdown and reduced consumer spending. Inflation concerns remain, with promised rate cuts by the Fed expected. Gold, silver, platinum, and palladium all saw gains as investors sought safe-haven assets amid the economic uncertainty.
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