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Gold Hovers Near Record as US Growth Concerns Fan Haven Demand

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(Bloomberg) -- Gold edged higher after rising through $3,000 an ounce on Friday, with investors weighing news the US government managed to avert a shutdown against persistent economic growth concerns.

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Bullion traded near $2,990 an ounce, after easing from its all-time high just shy of $3,005 an ounce, as the US Senate passed a Republican spending plan that paved the way for the approval of a government funding package.

Markets are still monitoring the fallout from President Donald Trump’s aggressive trade agenda, which saw the S&P 500 enter into a correction last week before rebounding on Friday. That rally bookended a week of drama, including the implementation of the US leader’s latest tariff threats, recession calls, and geopolitical talks concerning Ukraine’s future.

The uncertain outlook and accompanying haven appetite has helped drive bullion 14% higher so far this year, extending the metal’s strong annual advance in 2024. Banks are increasingly confident that further gains are in store, mapping out targets that would have seemed outlandish to many investors just a few quarters ago. Last week, Macquarie Group forecast prices would spike to $3,500 an ounce in the second quarter, while BNP Paribas SA raised its outlook to show average prices well above $3,000.

Elsewhere, investors will be monitoring a swath of central bank meetings this week as Trump’s trade salvos test policymakers’ nerves. In the US, Federal Reserve Chairman Jerome Powell faces a tricky task of both assuring investors the economy remains on solid footing and that policymakers are ready to step in with support.

Spot gold was trading up 0.2% to $2,988.58 an ounce at 8:22 a.m. in Singapore, after advancing 2.6% last week. The Bloomberg Dollar Spot Index was flat. Silver was little changed, while platinum and palladium eased lower.

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