Spot Gold rose for a second straight trading day on Tuesday, since uncertainty surrounding US President Trump’s tariff policies underpinned safe haven demand.
The Trump administration has already imposed a 10% tariff on imports from China, announced and postponed 25% tariffs on imports from Mexico and non-energy imports from Canada and is also intending to impose reciprocal tariffs on all countries that tax US imports.
Gold is likely to see further upside, supported by structurally higher central bank demand, according to Goldman Sachs analyst Lina Thomas.
The Wall Street bank revised up its year-end Gold price forecast for the precious metal to $3,100 per troy ounce from $2,890.
Yet, “if policy uncertainty – including tariff fears – stays high, higher speculative positioning for longer could push gold prices as high as $3,300/toz by year-end,” Goldman Sachs said in a note.
Market focus now sets on the minutes of the Federal Reserve’s January meeting due on Wednesday.
Yesterday Fed Governor Michelle Bowman said that greater confidence inflation might ease further this year was needed before reducing interest rates again.
Spot Gold was last gaining 0.44% to trade at $2,911.28 per troy ounce.
Spot Gold registered an all-time high of $2,942.78 per troy ounce on February 11th.
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