Gold: Trade Policy Chaos and Fed Easing Cycle Reinforce Safe-Haven Demand Above $5,000
Gold futures surged 1.7% on Friday to $5,081, reclaiming the $5,000 level convincingly as a confluence of trade policy upheaval and continued Federal Reserve easing underpinned demand for the world's oldest safe-haven asset. The precious metal touched an intraday high of $5,131, drawing fresh buying interest after the U.S. Supreme Court struck down the administration's reciprocal tariff regime — only for President Trump to announce plans for a blanket 15% global tariff, reigniting trade uncertainty. The backdrop for gold has rarely been more constructive. The Federal Reserve has cut rates from 4.33% to 3.64% over the past year, real yields are compressing, the U.S. dollar has weakened from its early-February highs, and inflation remains sticky above the Fed's 2% target. Gold is now trading 6.5% above its 50-day moving average of $4,773 and a remarkable 26% above its 200-day average of $4,030 — a textbook momentum breakout that continues to attract trend-following capital. For investors weighing gold's role in a diversified portfolio, the current environment presents a rare alignment of structural and cyclical tailwinds. The question is no longer whether gold belongs in portfolios, but how much weight it deserves as trade policy instability and monetary easing reshape the macro landscape.