Gold price Friday update: Record high as investors seek out safe haven while Donald Trump's tariffs drama continues

Investors are shunning stock markets around the world because of the volatility seen since Trump introduced his tariffs plan, then delayed it, then reintroduced it, and then paused it.

Whether he is genuinely trying to rebalance America’s trade with the world, or just using the tariffs as a bullying bargaining chip to extra more favourable trade deals - or doing both - remains to be seen, but what is certain is that stock markets have been trampolining this week.

Today the Nikkei in Japan has opened down, while South Korean and Australian markets are also continuing to slump. US markets rallied on Wednesday after a tariff pause was announced, and then slumped on Thursday.

However, away from this drama, the price of gold has quietly risen to a record high, as investors seek out what has traditionally been called a “safe haven”, largely unconnected as it is to currency and shares. The dollar is seen as the safe haven for currency investors but America’s recent turbulence means it has lost that appeal.

This morning gold has reached £3,200 - about £2,442 - an ounce , which is almost a third higher than the price seen a year ago. It’s seen a four per cent increase in the last week.

In the US the Federal Reserve has indicated it may make several interest rate cuts this year, which will also diminish the attraction of the dollar to investors.

Richard Hunter, head of markets at Interactive Investor, said investors “headed to the door once more in search of haven assets” following a “brief relief rally” in equity markets.

UK and European stocks surged higher on Thursday as traders welcomed Mr Trump’s decision to push back the introduction of some US tariffs by 90 days. But concerns over the impact of new and higher import taxes remain prominent, while the prospect of all-out trade war between the US and China has intensified.

The Royal Mint, which is the UK’s official maker of British coins, said it had seen a jump in demand for gold coins and bars.

Toby Osborne, the company’s head of wealth management, said: “Amid escalating trade tensions between the US and China, we’ve seen more customers purchasing physical gold such as coins and bars from the Royal Mint website. With markets facing uncertainty, gold remains a trusted store of value.”

He added that silver was also “gaining popularity, serving as an accessible entry point for investors” while gold trading hit all-time highs.

Pawnbroker and retailer Ramsdens earlier this week said higher gold prices, and an increase in the weight of gold purchased by buyers, had helped drive a 50% surge in profits for its precious metals division.

Analysts also flagged that some currencies had been boosted amid the turmoil.

Investment has been flowing “towards currencies such as the Swiss franc and the yen”, Mr Hunter said, while the US dollar has slumped in value in recent days.

Meanwhile, UK and European stock markets opened higher on Friday, but gains were swiftly reversed as tensions between China and the US continued to ramp up. London’s FTSE 100 was in negative territory by Friday morning and losses were growing for the Dax in Frankfurt and the Cac 40 in Paris.