Gold on fire

TDT | Manama

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Gold surpassed $3,000 for the first time Friday as US President Donald Trump’s trade wars boosted demand for the safe-haven asset, while stock markets bounced on signs US lawmakers would avert a government shutdown.

Gold, a haven in times of uncertainty, rose as much as $3,004 an ounce before paring back gains later in the day to trade just under $3,000.

The precious metal was “boosted on increased haven demand amid trade war risks and recent stock market volatility”, said Fawad Razaqzada, an analyst at City Index and Forex.com.

In the latest salvo, Trump threatened to impose 200 percent tariffs on wine, champagne and other alcoholic beverages from EU countries.

His threat came after the bloc’s planned levies on American-made whiskey and other products in retaliation to US levies on steel and aluminium.

Trump said he would not row back on the metals duties, nor his plans for sweeping tariffs on countries worldwide that are to kick in on April 2.

US shares rose in early deals after slumping in recent sessions while Asian equities ended the week on a positive note.

European stock markets were also given a lift in afternoon deals after Germany moved closer to approving a massive infrastructure and defence spending programme.