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(Bloomberg) — Gold rose to a record high as investors flocked to safety after US President Donald Trump reiterated threats to impose tariffs on Mexico and Canada.

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Bullion rose as much as 0.2% to $2,799.65 an ounce after prices jumped 1.3% on Thursday, blowing past the previous all-time peak set in October. The surge came after Trump said he would follow through on imposing 25% levies on imports from Canada and Mexico on Feb. 1. He also threatened China with tariffs, without specifying a level.

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The precious metal, which is on track for its fifth consecutive weekly gain, has benefited from haven demand as Trump’s tariff threats spur fears of trade wars that could sap economic growth. There are also worries that his pledges to cut taxes and overhaul immigration may erode US finances and reignite inflation. Federal Reserve Chair Jerome Powell said Wednesday the US central bank was in a “wait-and-see” mode with regard to the potential impact of the new administration’s policies. 

The Federal Open Market Committee this week left interest rates unchanged as expected — after cutting them at each of the three previous meetings since September — and indicated that stalled progress toward lower inflation warranted a patient approach.

Elsewhere, traders will be focused on the Fed’s favored inflation gauge, the personal consumption expenditures index — due later Friday. It’s expected to show a small acceleration in price hikes, according to the median forecast of economists surveyed by Bloomberg.

Spot gold rose 0.1% to $2,797.82 an ounce as of 8:22 a.m. in Singapore. The Bloomberg Dollar Spot Index added 0.1%. Silver, palladium and platinum were steady.

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