Due to risk aversion and growing forecasts of rate reduction by the Federal Reserve, gold reached a new record high of $3,000 per ounce on Friday.
Following the EU’s 50% tax on American whisky exports, US President Donald Trump threatened to put a 200% tariff on European wine and other alcoholic drinks as part of the most recent round of his multifront trade war.
Recent PPI and CPI statistics, however, indicated that price pressures had subsided in February, allowing the Fed greater leeway to lower interest rates and increasing the allure of non-yielding gold.
Strong demand for ETFs and ongoing central bank purchases—China has extended its purchases for the fourth consecutive month—also help to strengthen the metal.
Bullion is expected to rise around 3% for the week.