Gold Tests 2-Month Highs
2026-02-27 14:21
By
Felipe Alarcon
1 min. read
Gold rose nearly 1% to above $5,220 per ounce on Friday, testing 2-month highs as investors weighed aggressive US trade policy against sticky inflation data.
Bullion remains supported by safe-haven demand after the administration invoked Section 122 to implement 10% global tariffs, with Trade Representative Jamieson Greer signaling a potential hike to 15% following the recent Supreme Court ruling.
This protectionist shift, coupled with stalled US-Iran nuclear talks in Geneva and reports of a US Embassy departure advisory in Israel, has supercharged gold’s appeal as a systemic hedge.
On the data front, January core producer prices jumped 0.8%, the steepest monthly increase since mid-2025.
While this "hot" data supported the Dollar and pushed the first fully priced rate cut to July, gold remained resilient.
Gains were further bolstered by a massive rotation out of AI-heavy equities and into long-duration Treasuries, sending the 10-year yield to four-month lows.