Gold prices rose on Tuesday, supported by safe-haven demand amid uncertainty over U.S. President Donald Trump’s tariff plans for next week that could potentially boost inflation.
Spot gold was up 0.4% to $3,024.56 an ounce. U.S. gold futures were up 0.5% to $3,029.30.
“Investors are concerned about the state of the world, especially with U.S. policies being what they are, and so they’re buying gold as an alternative asset because they’re concerned that the U.S. government may throw the world into a global recession,” said Jeffrey Christian, managing partner of CPM Group.
Gold, traditionally seen as a hedge against geopolitical and economic uncertainties, has risen more than 15% this year and reached an all-time peak of $3,057.21 on March 20.
Trump has said not all of his threatened levies would be imposed on April 2 and some countries may get breaks. The Financial Times said the president is considering a two-step tariff regime next week.
Trump’s tariff policies are widely expected to weigh on economic growth, trigger further trade tensions, and drive up inflation.
Atlanta Federal Reserve President Raphael Bostic said he expected just one quarter-percentage-point reduction in the Fed’s benchmark interest rate by the year-end, following the U.S. Federal Reserve’s decision last week to keep rates on hold while hinting at half-percentage-point cut later this year.
“The odds of rate cuts are seem to be backing off a little bit and I think overall it’s still really bullish for (an)inflationary metal like gold … I would say next level up is probably around $3,125,” said Daniel Pavilonis, senior market strategist at RJO Futures.
Meanwhile, Ukrainian and U.S. delegations are scheduled to meet on Tuesday in Saudi Arabia following Russia-U.S. talks there a day earlier on a limited Black Sea ceasefire proposal that Washington hopes will open the way for broader peace negotiations.
Spot silver gained 1.9% to $33.61 an ounce, platinum added 1.1% to $983.56 and palladium added 1.2% to $959.75.
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