Gold hits record as tariff fears dampen market sentiment

HONG KONG

Gold prices hit a fresh record Monday while the dollar weakened further and stocks were mixed amid worries about Donald Trump's tariff blitz and bubbling row with the Federal Reserve.

With several markets still closed for the Easter holiday, business was limited ahead of a week that will see the release of key data that should give an insight into the impact of the U.S. president's trade war.

Concerns about the global economic outlook pushed safe haven assets higher, with gold hitting a new record high above $3,384.

The precious metal was also helped by a weaker dollar, which has also been hit by worries about Trump's standoff with Fed boss Jerome Powell.

The president raised worries about the bank's independence when he last week lashed Powell for warning that the tariffs were "highly likely to generate at least a temporary rise in inflation" and suggested interest rate cuts were unlikely.

Trump later called on him to slash borrowing costs and added: "If I want him out, he'll be out of there real fast, believe me."

The dollar fell against its main peers, with the yen and euro among the best performers.

Oil prices dropped on demand fears as worries about the global economy swirl.

Traders are keeping tabs on the release of key April manufacturing data around the world this week, hoping for an idea about the early impact of Trump's tariffs.

"One thing that's absolutely clear – and no longer debatable –  is that the reputational hit to the U.S. brand is real, and it's not fading quietly into the next news cycle," said Stephen Innes at SPI Asset Management.