Spot Gold held in proximity to an all-time high of $3,245.42 per troy ounce on Tuesday amid ongoing uncertainty regarding the Trump administration’s tariff plans.
The US is conducting probes into imports of pharmaceuticals and semiconductors as part of a bid to impose tariffs on both segments, as extensive dependence on foreign production of medicine and chips is seen as a national security threat, according to Federal Register filings.
US President Trump said over the weekend that the tariff rate on semiconductor imports would be announced soon.
“Gold continues to firm today … on ongoing investors’ demand for defensive assets to mitigate portfolio volatility as the U.S. seems to be setting the stage for more tariffs to come,” IG market strategist Yeap Jun Rong was quoted as saying by Reuters.
At the same time, Atlanta Federal Reserve Bank President Raphael Bostic said the tariff uncertainty had put the economy into a “big pause.” Bostic indicated the US central bank should keep borrowing costs on hold until there is more clarity.
Markets are now expecting the Federal Reserve will likely resume monetary policy easing in June.
Spot Gold was last up 0.45% on the day to trade at $3,225.23 per troy ounce.
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