Gold faces pressure just ahead of a fresh all-time high

LONDON (February 14) Gold’s price (XAU/USD) is ticking higher and heads to $2,930 at the time of writing on Friday, holding good cards to close out this week with a new all-time high and solid gains. The latest leg up comes after United States (US) President Donald Trump signed the executive order for reciprocal tariffs on Thursday. Although it will still take weeks before tariffs are implemented, investors are not taking any chances and are parking their money in safe haven Gold.  

Meanwhile, Gold added another tailwind to its rally, with a substantially weaker US Dollar (USD) and US Dollar Index (DXY) overall. The Greenback is losing traction because President Trump’s reciprocal tariffs need weeks or months before implementation. That opens the window of opportunity for negotiations, and hence, there is no immediate flight to a safe haven on the back of any announcement or signing of an executive order by the US President. 

Daily digest market movers: What tariffs are left?

• Gold advances for a third day to trade near a record high after US President Donald Trump’s order for reciprocal tariffs against several nations increased uncertainty around trade and the global economy, Bloomberg reports. 
• Bullion futures on Comex are trading at a substantial premium to spot. The most active contract is for April, and it is currently above $2,960. Meanwhile, cash is $30 lower, just below its all-time high, Reuters reports.
• At 13:30 GMT, January’s US Retail Sales data will be released. Expectations are for a 0.1% fall in Retail sales compared to the 0.4% increase in December. 

FXStreet