Gold Market Update: Safe Haven Demand Stabilizes Prices Amid Trade War Concerns
Gold prices remained stable on Tuesday, bolstered by increased demand for safe-haven assets as uncertainties surrounding US customs duty proposals and inflationary pressures loom large.
As of 02:20 GMT, gold prices exhibited little change, trading at $2,950.39 per ounce, just shy of Monday’s record high of $2,956.15. In parallel, US gold futures saw a slight uptick of 0.1% to reach $2,967.40.
Market strategist Yip John Rong at IG indicated that participants are increasingly considering the potential risks associated with incoming customs tariffs, particularly with the deadlines for duties on Mexican and Canadian imports approaching next week.
President Trump’s remarks on Monday reaffirmed that tariffs on imports from Canada and Mexico are scheduled to take effect "on time and on the appointed date," despite both nations’ efforts to improve border security and curb the flow of fentanyl into the US before the March 4 deadline.
Market watchers, including investors and economists, anticipate a robust and systematic response from the US Federal Reserve to any shifts in inflation and the labor market. Ahead of the upcoming personal consumer spending report—which is a key inflation indicator for the Federal Reserve—investors are poised to gauge insights into potential interest rate cuts. This report is expected to be released on Friday.
In other precious metals, silver gained 0.3%, reaching $32.45 per ounce. Meanwhile, platinum held steady at $966, whereas palladium experienced a decline of 0.4%, settling at $936.25.
| Metal | Price (per ounce) |
|---|---|
| Gold | $2,950.39 |
| Silver | $32.45 |
| Platinum | $966 |
| Palladium | $936.25 |
This analysis highlights the ongoing volatility in the commodities market amid geopolitical tensions, underlining the close relationship between trade policies and precious metal valuations.
