14.03.202509:46:00UTC+00Gold Scales Record Peak On Tariff, Growth Worries

Gold prices hit a record high on Friday and held close to the key $3,000 mark, helped by tariff-related worries and expectations that slowing inflation and concerns over growth will prompt the Federal Reserve to cut interest rates this year.

Spot gold edged up by 0.2 percent to $2,995.10 per ounce in European trade while U.S. gold futures were up 0.6 percent at $3,008.10.

In the latest in a long list of tariff threats, U.S. President Donald Trump said on Thursday he would impose a 200 percent tariff on all wines, champagnes and alcoholic products coming out of the EU in response to a "nasty" 50 percent tariff on whisky, which was imposed as a counter measure to previous levies announced by the U.S.

It is feared that Trump' tariff policies could hit businesses and in turn impact the common consumers in a consumption-driven economy.

The Fed's next meeting is due on Wednesday and the U.S. central bank is widely expected to maintain status quo on rates.

Amid much uncertainty over President Trump's trade policies and their impact on U.S. growth and inflation, traders await further guidance on the rate outlook. Traders expect policymakers will resume cutting borrowing costs in June.