Gold prices remained near record highs on Wednesday as investors awaited details of US President Donald Trump’s new tariff plans, which could have significant implications for global trade and economic growth.
Spot gold rose 0.6% to $3,128.41 per ounce, while US gold futures gained 0.4% to $3,159.10. On Tuesday, bullion hit an all-time high of $3,148.88, continuing a strong rally fueled by economic uncertainty and geopolitical instability.
Gold prices have surged by over $400 per ounce since Trump took office in January, reflecting investors’ preference for the metal as a safe-haven asset. Analysts suggest that further tariff-related volatility could drive gold prices even higher in the coming months.
Trump has promoted April 2 as “Liberation Day” and is expected to announce a sweeping tariff plan in a White House Rose Garden event at 2000 GMT. While details remain unclear, analysts warn that aggressive tariffs could slow global economic growth, spark inflation, and intensify trade tensions.
“Gold is currently receiving strong support from geopolitical and macroeconomic uncertainties,” said ANZ Commodity Strategist Soni Kumari. “If Trump’s reciprocal tariffs turn out to be severe, we could see another surge in gold prices.”
The Institute for Supply Management (ISM) reported Tuesday that US manufacturing contracted in March, reversing two months of growth. A weakening manufacturing sector, coupled with persistent inflation risks, has fueled speculation about potential Federal Reserve interest rate cuts later this year.
UBS analyst Giovanni Staunovo forecasts gold to average $3,200 per ounce in 2025 but warns that prices could rise to $3,500 if the US economy slows sharply.
Investors are also watching key employment data, including the ADP jobs report later today and Friday’s non-farm payrolls report, for insights into the Federal Reserve’s policy direction.
Analysts at State Street Global Advisors SPDR predict that gold prices could break above $3,300-$3,400 per ounce over the next six to nine months, supported by:
Rising investor demand
Increased central bank gold purchases
Persistent geopolitical instability
Concerns over a potential US economic slowdown
“Gold will continue to outperform within the metals complex unless the Federal Reserve unexpectedly tightens monetary policy,” noted analysts at BMI Research.
Other Metals
Silver rose 0.5% to $33.90 per ounce
Platinum fell 0.2% to $977.97
Palladium gained 0.2% to $985.70
Reuters, the Financial Times, CNBC, and the Wall Street Journal contributed to this report.
