Gold Hits 4-week High

Gold increased to 5251.00 USD/t.oz, the highest since January 2026. Over the past 4 weeks, Gold lost 3.21%, and in the last 12 months, it increased 83.61%.

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.

Gold firmed around $5,180 per ounce on Friday, on track for its seventh consecutive monthly rise as investors weighed US trade policy and geopolitical risks. President Trump’s new 10% global tariffs took effect earlier this week, with the potential to rise to 15% for certain countries following the Supreme Court’s ruling against broader duties. Meanwhile, Washington and Tehran are set to resume negotiations next week following progress on Thursday, paving the way for further diplomacy, though a US source said officials left disappointed. On the monetary policy front, traders are watching Fed signals, with Chicago Fed’s Austan Goolsbee citing possible rate cuts if inflation eases, while Governor Stephen Miran supports a full 1-point cut in 2026. Still, the probability of a rate reduction by June has fallen to 50%, and expectations of a third cut by year-end have nearly vanished.