Spot Gold held within striking distance of yesterday’s record high of $3,148.88 per troy ounce on Wednesday ahead of the Trump administration’s reciprocal tariff announcement.
US President Trump is expected to impose tariffs on a range of products and nations, including Canada and Mexico, two key US trading partners, later in the day.
The White House has confirmed that new tariffs will be imposed, but no details on the size or scope were disclosed.
Investors sought the comfort of safe-haven Gold due to lingering concerns reciprocal tariffs may stoke inflation and hinder GDP growth.
In terms of macro data, investor focus now sets on the US private payrolls data, due out today, and the Non-Farm Payrolls report, due out on Friday, for more clues over the state of the economy and the Fed’s future rate cut path.
Spot Gold was last up 0.07% on the day to trade at $3,116.54 per troy ounce.
Strong central bank buying, uncertainty surrounding US tariffs, potential rate cuts by the Federal Reserve and escalating Middle East tensions have fueled Gold’s rally to a series of record highs this year. Year-to-date, the yellow metal has surged 18.9%.
“The market could test $3,400/oz over the next 9 months in a bull case scenario,” Aakash Doshi, global head of gold strategy at State Street Global Advisors, was quoted as saying by Reuters.