Gold Reaches New Heights Amid Trade War Worries

Gold prices hit a record high fueled by escalating trade war fears following U.S. President Trump's proposed auto tariffs. Global stock markets, including Wall Street, experienced significant losses, while investors rushed to the safe-haven metal. This economic uncertainty also led to shifts in bond yields and currency fluctuations.

Gold prices soared to unprecedented levels on Friday as international tensions over potential trade wars mounted, following the U.S. President Donald Trump's announcement of new auto tariffs. U.S. stock markets felt the pressure, with all three major indexes recording losses for a third consecutive session.

Stocks across major sectors such as communication services and technology were among the hardest hit. Meanwhile, gold solidified its status as a safe-haven, reaching a new peak at $3,086.70 per ounce, amid rising inflation, geopolitical risks, and fiscal uncertainties. Investors are increasingly cautious as they balance these risks with declining global stock values.

In the bond market, yields on U.S. Treasuries and the euro zone's German Bund adjusted to reflect anticipated economic impacts. Currency strengths shifted as the U.S. dollar faced pressure, particularly against the yen and the euro, in light of ongoing geopolitical and economic developments.

(With inputs from agencies.)