Gold prices hit a record high on Friday, set for their best month since March 2024, as investors flocked to the safe-haven metal due to heightened US tariff concerns, while awaiting a key inflation report for further direction.
Spot gold was up 0.2% at $2,798.96 per ounce, by 0749 GMT, gaining more than 6% this month. Prices hit an all-time high of $2,800.99, earlier.
US gold futures rose 0.1% to $2,826.50, Reuters reported.
Trading was thin as Chinese markets were closed for the Lunar New Year holidays.
On Thursday, President Donald Trump once again said that the US may impose 25% tariffs on Mexican and Canadian imports.
"Repeated tariff threats have fueled safe-haven flows into gold... any downside surprise in the inflation reading could suggest greater policy flexibility for the Federal Reserve, potentially bringing forward rate-cut expectations and providing further support for gold," IG market strategist Yeap Jun Rong said.
The December US personal consumption expenditures (PCE) report will be scanned for further clues on the rate trajectory. On Wednesday, Fed Chair Jerome Powell said inflation and jobs data would determine when easing would be appropriate.
Gold is considered a safe investment during geopolitical turmoil and thrives in a low interest rate environment.
"We reiterate that long gold remains our highest conviction trading recommendation across commodities, driven by structural (central bank buying) and cyclical (Exchange Traded Funds buying) factors," Goldman Sachs said.
Further gains could be in store for gold if tariff threats move from being a bargaining concept to an economic reality, said Tim Waterer, chief market analyst at KCM Trade, adding that prices could move north of $2,800.
Spot silver shed 0.7% to $31.46 per ounce, palladium fell 0.2% to $986.75, and platinum added 0.3% to $969.10.
Silver and platinum were poised for weekly gains.
