Gold prices soared past $3,000 for the first time Friday as President Donald Trump’s trade wars boosted demand for safe-haven assets, while stock markets bounced on signs US lawmakers would avert a government shutdown.
Major U.S. indices opened higher and maintained gains in positive territory through the day, shrugging off a downcast reading on US consumer sentiment.
European markets also rallied, particularly after Germany moved closer to passing a major infrastructure and defense spending program.
In Washington, Senate Democratic leader Chuck Schumer withdrew his opposition to a Republican spending bill just hours before a critical deadline, increasing confidence that the government would continue operating through September. Analysts noted that this development helped stabilize investor sentiment.
Despite ongoing trade tensions, gold briefly reached $3,004 an ounce before settling just below $3,000. Analysts attributed the surge to growing concerns over market volatility and the latest round of U.S. tariffs, which included a 200 percent duty on European wines and spirits.
Wall Street, which has been under pressure due to trade disputes, rebounded on Friday. The S&P 500 closed at 5,638.94, marking a 2.1 percent daily gain, though it remained down for the week. Analysts cautioned that the rally might be short-lived, citing continued trade uncertainties and economic slowdown fears.
In corporate developments, shares of Gucci-owner Kering plunged more than 11 percent as the company appointed a new creative director, while BMW warned that escalating trade tensions could cost the automaker $1 billion this year.
Key financial indices, including the Dow Jones, Nasdaq, and major European and Asian markets, all recorded gains, while crude oil prices also edged higher.
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