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.
