Gold prices rose on Tuesday as uncertainty persisted over U.S. President Donald Trump’s proposed tariffs and their impact on the global economy.
Spot gold increased by 0.5% to $3,226.24 per ounce as of 06:51 GMT, approaching the record high of $3,245.42 it reached on Monday. U.S. gold futures also climbed 0.5% to $3,242.50.
Yeap Jun Rong, a market strategist at IG, stated:
"Gold continues its upward trend today as investors seek safe-haven assets to reduce portfolio volatility, especially with the U.S. preparing to impose more tariffs."
According to filings from the U.S. Federal Register on Monday, the United States is moving forward with investigations into pharmaceutical and semiconductor imports as part of efforts to impose tariffs on these sectors, citing that heavy reliance on foreign production in these areas poses a national security threat.
Trump said on Sunday that he will announce the tariff rate on imported semiconductors next week, keeping markets on edge.
Yeap added that with gold prices recently hitting record highs, the bullish trend remains intact, and the precious metal may continue to find support as long as tariff uncertainty persists.
Meanwhile, Atlanta Federal Reserve President Raphael Bostic commented that uncertainty surrounding tariffs and other policies has led the economy into a "major pause", suggesting the Fed should maintain its current stance until the situation becomes clearer.
Gold, which yields no interest, is considered a safe haven during periods of global uncertainty and inflation, and it performs well in low interest rate environments.
Data from the World Gold Council showed that investments in physically backed gold ETFs in China this month have already exceeded total investments for the entire first quarter, outpacing inflows into U.S.-listed funds.
As for other metals:
Spot silver fell 0.2% to $32.29 per ounce
Platinum dropped 0.2% to $949.21
Palladium declined 1.4% to $943
— Agencies
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