Spot Gold scaled a new all-time peak of $3,167.57 per troy ounce on Thursday, after US President Trump unveiled an extensive set of import tariffs, which added more fuel to an already simmering global trade war.
Yesterday the Trump administration announced a 10% baseline tariff on all imports to the United States and higher levies on a number of nations, including some of the US key trading partners.
Trump also confirmed that the 25% global car and truck tariffs would come into effect on April 3rd, while levies on automotive parts imports would take effect on May 3rd.
Market players flocked to safe-haven Gold because of concerns the new tariffs might trigger a US GDP growth slowdown, which added to prospects of future interest rate cuts by the Federal Reserve.
Spot Gold was last down 0.21% on the day to trade at $3,127.82 per troy ounce.
Gold is in a “pure momentum trade, where bulls who were left for dust are agonising on the side line, eager for even the smallest of dips, and until we see a volatile shakeout big enough to stun bulls and bears, the momentum trade could continue higher,” Matt Simpson, senior analyst at City Index, was quoted as saying by Reuters.
Strong central bank buying, uncertainty surrounding US tariffs, potential rate cuts by the Federal Reserve and escalating geopolitical tensions have fueled Gold’s rally to a series of record highs this year. Year-to-date, the yellow metal has surged 19.4%.
Investor focus now sets on 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.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
