Gold prices have hit a historic milestone, soaring past $3,000 per ounce for the first time on Friday, fueled by escalating trade tensions and economic uncertainty. The surge comes as U.S. President Donald Trump threatens fresh tariffs on European goods, rattling global markets.
While stocks struggled earlier in the week, Wall Street rebounded after Senate Democratic leader Chuck Schumer withdrew his opposition to a Republican-backed spending bill, raising hopes of avoiding a government shutdown. Asian and European markets also saw gains, with Germany making strides toward a massive infrastructure and defense spending package.
Gold’s appeal as a safe-haven asset has been amplified by fears of a deepening trade war. Trump’s latest move includes a proposed 200% tariff on European wines and spirits, a response to EU plans to impose levies on American whiskey and other goods. The uncertainty has shaken investors, with Wall Street’s S&P 500 index entering correction territory after falling over 10% from its recent peak.
Elsewhere, the UK economy showed unexpected contraction, pushing the pound lower. In corporate news, Gucci-owner Kering saw its shares plummet over 11% after announcing a leadership change, while BMW warned that ongoing trade disputes could cost the company $1 billion this year.
As the global economy faces turbulent times, gold continues to be a top refuge for investors bracing for further market shocks.
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