Spot Gold rose to yet another record high of $3,148.88 per troy ounce on Tuesday, as concerns that the Trump administration’s reciprocal tariffs may stoke inflation and hamper growth continued to underpin traditional safe haven assets.
US President Trump is expected to impose tariffs on a range of products and nations, including Canada and Mexico, two key US trading partners, tomorrow.
And, auto tariffs are to take effect on April 3rd.
Trump also threatened to impose secondary tariffs of 25% to 50% on buyers of Russian oil and additional tariffs on Iran in case Tehran fails to make nuclear deal.
“The anticipation of the April 2 U.S. reciprocal tariffs has led market participants to lean towards a defensive stance, with some de-risking and turning to safe-haven gold as a hedge against impending portfolio volatility,” IG market strategist Yeap Jun Rong was quoted as saying by Reuters.
“While technical indicators suggest overextension in the near term, uncertainty surrounding the tariffs is likely to sustain gold’s traction for now, with buyers seemingly eyeing for a retest of the $3,200 level next.”
In terms of macro data, investor focus now sets on the US job openings and manufacturing activity reports for more clues over the state of the economy.
Spot Gold was last up 0.37% on the day to trade at $3,135.41 per troy ounce.
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