Gold set to close off this week at a fresh all-time high

NEW YORK (March 28) Gold price (XAU/USD) is printing another record performance this Friday, hitting $3,086 as the new all-time high for now and trading around $3,077 at the time of writing. Bullion sees another wave of safe-haven inflow, this time from investors that are exiting Equity and Crypto positions. From here, the next big psychological target and level to beat will be $3,100. 

The US Personal Consumption Expenditures (PCE) data for February came in. The monthly core PCE came in higher at 0.4% against the expected 0.3%, while the headline figure remained cemented at 0.3% as well. 

These past few days, inflation concerns in the United States (US) have been picking up as the impact of the United States (US) President Donald Trump’s tariff implementations on inflation is hard to measure. The risks of the US economy heading into recession or stagflation are major concerns for investors and could bring moves in Equity and Bond markets, and see Gold extending further. 

Daily digest market movers: Reciprocal tariffs on their way

• Inflation in France and Spain undershot expectations this Friday, supporting calls for more interest rate cuts by the European Central Bank (ECB). The French headline Consumer Price Index year-on-year grew steadily by 0.9% this month, defying analyst predictions for an uptick. In Spain, it slowed by 2.2%, a much deeper deceleration than expected, and is the first country that approaches the ECB’s target of 2%, Bloomberg reports. 
• Some fair-value modeling reveals that Gold is 13% overvalued, suggesting that further policy uncertainty regarding US tariff execution is already factored in.  A peace deal for Ukraine could see the precious metal give up some gains as geopolitical risk perceptions ease, Reuters reports. 
• On Thursday, US President Donald Trump signed a proclamation to implement a 25% tariff on auto imports and pledged harsher punishment on the EU and Canada if they join forces “to do economic harm” against the US, while April 2nd approaches fast for the so-called reciprocal tariff implementation, Bloomberg reports.

FXStreet