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After moving sharply higher over the past few sessions, the price of gold showed a modest move back to the downside during trading on Tuesday.

Gold for April delivery edged down $3.90 or 0.1 percent to $3,118.90, snapping a three-session winning streak and pulling back off the record closing high set in Monday’s session.

The modest pullback may have reflected profit taking following the recent surge, although selling pressure was relatively subdued amid lingering concerns about President Donald Trump’s trade policies ahead of the announcement of reciprocal tariffs on Wednesday.

“On Wednesday, it will be Liberation Day in America, as President Trump has so proudly dubbed it,” White House press secretary Karoline Leavitt said.

“The President will be announcing a tariff plan that will roll back the unfair trade practices that have been ripping off our country for decades,” she added. “He’s doing this in the best interest of the American worker.”

A report from the Washington Post this morning said White House aides have drafted a proposal to impose tariffs of around 20 percent on most imports to the U.S.

However, the Washington Post noted White House advisers cautioned that several options are on the table and no final decision has been made.

In U.S. economic news, a report from the Institute for Supply Management showed activity in the U.S. manufacturing sector contracted in March after two consecutive months of expansion.

The ISM said its manufacturing PMI dipped to 49.0 in March from 50.3 in February, with a reading below 50 indicating contraction. Economists had expected the index to edge down to 49.5.

Euro area inflation eased in March largely due to a slowdown in the services costs growth and strengthened the calls for further interest rate cuts from the European Central Bank.

The harmonized index of consumer prices rose 2.2 percent year-on-year in March, which was slightly slower than the 2.3 percent rise in February, flash data from Eurostat showed on Tuesday. The rate matched expectations.

Core inflation that excludes prices of food, alcohol and tobacco, slowed to 2.4 percent from 2.6 percent in the previous month. Inflation was expected to slow marginally to 2.5 percent.

Data showed that growth in food prices increased to 2.9 percent from 2.7 percent. Meanwhile, prices of energy fell 0.7 percent, reversing February’s 0.2 percent gain.

Services costs rose at a slower pace of 3.4 percent after a 3.7 percent increase. At the same time, growth in non-energy industrial goods prices held steady at 0.6 percent.

On a monthly basis, the HICP logged an increase of 0.6 percent in March. Final data is due on April 16.

The recent data support the view that the ECB will cut interest rates by 25 basis points again later this month, Capital Economics economist Jack Allen-Reynolds said.

In March, the ECB cut interest rates for a fifth policy session in a row and lowered the deposit rate by 25 basis points to 2.5 percent, which is its lowest level since February 2023. The bank had signaled a pause in the easing cycle as policy was deemed less restrictive.

Germany’s harmonized inflation eased to 2.3 percent in March from 2.6 percent in February and French inflation held steady at 0.9 percent. Spain’s inflation fell to a five-month low of 2.2 percent in March.

On the other hand, Italy’s inflation accelerated to 2.1 percent from 1.7 percent.

Separate official data showed that the euro area unemployment rate dropped to 6.1 percent from 6.2 percent in January. In the same period last year, the rate was 6.5 percent.

Unemployment decreased by 70,000 from the prior month. The number of people out of work totaled 10.580 million.

The youth unemployment rate climbed to 14.2 percent in February from 14.1 percent in the previous month.

Activity in the U.S. manufacturing sector contracted in March after two consecutive months of expansion, according to a report released by the Institute for Supply Management on Tuesday.

The ISM said its manufacturing PMI dipped to 49.0 in March from 50.3 in February, with a reading below 50 indicating contraction. Economists had expected the index to edge down to 49.5.

The modest decrease by the headline index partly reflected an accelerated contraction by new orders, as the new orders index slid to 45.2 in March from 48.6 in February.

“Orders continue to slow, as discussions about who will pay for potential tariff costs are the prime topic of negotiations between buyers and sellers,” said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.

The report also showed a downturn by production, with the production index falling to 48.3 in March from 50.7 in February.

The employment index also declined to 44.7 in March from 47.6 in February, suggesting employment in the manufacturing sector decreased for the second consecutive month.

Meanwhile, the ISM said the prices index jumped to 69.4 in March from 62.4 in February, indicating a notable acceleration by the pace of price growth.

The Institute for Supply Management is scheduled to release a separate report on U.S. service sector activity in the month of March on Thursday.

The services PMI is currently expected to edge down to 53.0 in March after inching up to 53.5 in February, but a reading above 50 would still indicate growth.

Job opening in the U.S. fell by more than expected in the month of February, the Labor Department revealed in a report released on Tuesday.

The Labor Department said job openings dipped to 7.568 million in February from an upwardly revised 7.762 million in January.

Economists had expected job openings to slip to 7.630 million from the 7.740 million originally reported for the previous month.

The report said hires crept up to 5.396 million in February from 5.371 million in January, while total separations edged down to 5.261 million in February from 5.272 million in January.

Within separations, quits fell to 3.195 million in February from 3.256 million in January but layoffs rose to 1.790 million in February from 1.674 million in January.

OPEC+ ministers from eight nations that are gradually raising oil output will meet online on Thursday and are likely to approve a further hike in production from May, sources from the producer group told Reuters.

Eight members of OPEC+, a group that includes the Organization of the Petroleum Exporting Countries and allies led by Russia, are scheduled to raise oil output by 135,000 barrels per day in May.

That would be the second monthly increase under a plan to unwind some of the millions of barrels per day of cuts the group has had in place since 2022.

OPEC+ is simultaneously pressuring other producers that have exceeded their output targets to rein in output and pump below target for a time to compensate.

Two of the OPEC+ sources said the meeting was to review plans for some members to make additional output cuts to compensate for pumping above their quotas.

Two others said the group’s plan to continue to unwind their most recent layer of oil output cuts was expected to remain unchanged for May.

All sources declined to be identified by name due to the sensitivity of the matter. OPEC did not immediately reply to a Reuters request for comment.

OPEC+ has been cutting output by 5.85 million bpd, equal to about 5.7 per cent of global supply. The group has agreed on a series of steps since 2022 to support the market.

An OPEC+ ministerial committee, with the power to recommend to the larger group changes in production policy, was earlier scheduled to meet on April 5 although one source said this may also take place on Thursday.

Canadian manufacturing activity contracted at a steeper rate in March as a widening global trade war triggered the sharpest decline in new orders since shortly after the start of the COVID-19 crisis.

The S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) fell to 46.3 from 47.8 in February, touching its lowest level since December 2023. A reading below 50 indicates contraction in the sector.

“Canada’s manufacturing economy endured a challenging month in March as the specter of tariffs being applied on a wider range of goods and services continued to weigh heavily on the sector,” Paul Smith, economics director at S&P Global Market Intelligence, said in a statement.

U.S. President Donald Trump unveiled last Wednesday a 25 per cent tariff on imported vehicles after previously raising tariffs on steel and aluminum. Additional tariffs are expected on April 2.

Canada sends about 75 per cent of its exports to the United States.

The output index fell to 45.7 from 47.5 in February and the new orders measure was at 42.3, its lowest level since May 2020.

“Unsurprisingly, export trade suffered especially, and firms are growing increasingly pessimistic about the outlook, typically now expecting to see output decline from present levels over the coming year,” Smith said. “Adding to the gloomy picture, and again a direct consequence of trade tariffs, inflationary pressures have picked up.”

The measure of future output fell to 45.1, its lowest level in data going back to July 2012, while the input price index was at 63.6, up from 58.9 in February and its highest level since August 2022.

The Bank of Canada has said it needs to ensure higher prices from tariffs do not spread. Investors expect the central bank to pause its interest rate cutting campaign at a policy decision on April 16.

Gold prices rose to touch a new record high on Tuesday, as investors turned to the safe-haven asset ahead of U.S. President Donald Trump’s planned announcement of sweeping tariffs on countries that have a trade imbalance with the U.S.

Spot gold was up 0.2% at $3,128.99 per ounce, after hitting an all-time high of $3,148.88 earlier in the day.

U.S. gold futures were 0.3% higher at $3,160.2.

Robust central bank purchases, as well as a combination of geopolitical and economic uncertainty driven by Trump’s tariff plans, are supporting gold, said Ryan McIntyre, senior portfolio manager at Sprott Asset Management.

“The uncertainty is probably going to prevail for quite a while. We’ll have to see what comes out tomorrow,” McIntyre added.

Markets and consumers are waiting for details of Trump’s planned tariffs, set to be announced on Wednesday. White House aides have drafted plans for tariffs of around 20% on most U.S. imports, the Washington Post reported Tuesday.

Gold, traditionally seen as a hedge against geopolitical and economic uncertainties, closed out its strongest quarter since 1986 on Monday, and climbed over $3,100/ounce, marking one of the most significant upswings in the precious metal’s history.

Goldman Sachs raised the probability of a U.S. recession to 35% from 20% on Monday, and said it expected more rate cuts by the Federal Reserve. Non-yielding bullion thrives in a low-interest rate environment.

“We continue to see the gold prices moving higher,” due in part to increasing gold holdings by physically backed ETFs, McIntyre added.

On a technical basis, gold’s Relative Strength Index (RSI) stands above 70, indicating the metal is overbought.

Job openings fell to 7.568 million by the end of February, the Labor Department’s Bureau of Labor Statistics said in a Tuesday report, compared with economists’ expectation of 7.616 million. Investors’ are also awaiting Friday’s non-farm payrolls report for cues on the Fed’s rate cut trajectory.

Silver fell 0.5% to $33.92 an ounce, platinum was down 0.9% at $983.64. Palladium was marginally higher at $983.20.

Oil prices steadied near five-week highs on Tuesday as threats by U.S. President Donald Trump to impose secondary tariffs on Russian crude and attack Iran countered worries about the impact of a trade war on global growth.

Brent futures were up 7 cents, or 0.1%, at $74.84 a barrel, after rising to above $75 a barrel earlier in the session. U.S. West Texas Intermediate crude futures rose 4 cents, or less than 0.1%, to $71.52.

The contracts settled at five-week highs a day earlier.

“While stricter sanctions on Iran, Venezuela, and Russia could constrain global supply, the U.S. tariffs are likely to dampen global energy demand and slow economic growth, which in turn will affect oil demand further out on the curve,” SEB analyst Ole Hvalbye said.

“As a result, betting on a clear direction for the market has been – and remains – challenging,” he added.

Trump on Sunday told NBC News that he was very angry with Russian President Vladimir Putin and would impose secondary tariffs of 25% to 50% on Russian oil buyers if Moscow tried to block efforts to end the war in Ukraine.

Tariffs on buyers of oil from Russia, the world’s second largest oil exporter, would disrupt global supply and hurt Moscow’s biggest customers, China and India.

Trump also threatened Iran with similar tariffs and bombings if Tehran did not reach an agreement with the White House over its nuclear program.

A Reuters poll of 49 economists and analysts in March projected that oil prices would remain under pressure this year from U.S. tariffs and economic slowdowns in India and China, while OPEC+ increases supply.

Slower global growth would dent fuel demand, which might offset any reduction in supply due to Trump’s threats.

Prices found some support after Russia ordered Kazakhstan’s main oil export terminal to close two of its three moorings amid a standoff between Kazakhstan and OPEC+ – the Organization of the Petroleum Exporting Countries, plus allies led by Russia – over excess production.

Kazakhstan will have to start cutting oil output as a result, two industry sources told Reuters. Another source said that repair work at the Caspian Pipeline Consortium terminal will take more than a month.

The market will be watching an April 5 OPEC+ ministerial committee meeting to review policy. told Reuters OPEC+ was on track to proceed with a production hike of 135,000 barrels per day in May. OPEC+ had already agreed a similar hike in production for April.

Meanwhile, five analysts surveyed by Reuters estimated on average that U.S. crude inventories fell by about 2.1 million barrels in the week to March 28.

Monday March 31

Japan industrial production and retail sales

China PMI

Germany retail sales and CPI

Earnings include: Pizza Pizza Royalty Corp.; Sigma Lithium Resources Corp.

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Tuesday April 1

Japan jobless rate and manufacturing PMI

Euro zone CPI, manufacturing PMI and jobless rate

(9:30 a.m. ET) Canada’s S&P Global Manufacturing PMI for March.

(9:45 a.m. ET) U.S. S&P Global Manufacturing PMI for March.

(10 a.m. ET) U.S. ISM Manufacturing PMI for March.

(10 a.m. ET) U.S. construction spending for February. The consensus estimate on the Street is a rise of 0.2 per cent month-over-month.

(10 a.m. ET) U.S. Job Openings and Labor Turnover Survey for February.

Also: Canadian and U.S. auto sales for March

Earnings include: NovaGold Resources Inc.

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Wednesday April 2

(8:15 a.m. ET) U.S. ADP National Employment Report for March.

(10 a.m. ET) U.S. factory orders for February. The Street is projecting a gain of 0.4 per cent from January.

Earnings include: BlackBerry Ltd.; Foran Mining Corp.; Sailpoint Inc.

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Thursday April 3

Japan, Euro zone and U.K. services and composite PMI

(7:30 a.m. ET) U.S. Challenger Layoff Report for March.

(8:30 a.m. ET) Canada’s merchandise trade balance for February.

(8:30 a.m. ET) U.S. initial jobless claims for week of March 29.

(8:30 a.m. ET) U.S. goods and services trade balance for February.

(9:30 a.m. ET) Canada’s S&P Global Services PMI for March.

(9:45 a.m. ET) U.S. S&P Global Services PMI for March.

(10 a.m. ET) U.S. ISM Services PMI for March.

Earnings include: Conagra Brands Inc.; Constellation Brands Inc.; Dollarama Inc.; Richelieu Hardware Ltd.

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Friday April 4

China markets closed

U.K. GDP, retail sales and trade balance

Germany factory orders and manufacturing production

(8:30 a.m. ET) Canadian employment report for March. The consensus forecast is a gain of 15,600 jobs (versus 1,100 in February) with the unemployment rate rising 0.1 per cent to 6.7 per cent.

(8:30 a.m. ET) U.S. employment report for March. The Street is projecting a gain of 135,000 jobs (versus 150,000 in the previous month) with the unemployment rate remaining 4.1 per cent.

(10 a.m. ET) U.S. Global Supply Chain Pressure Index for March.

Earnings include: Corus Entertainment Inc.; MTY Food Group Inc.