Gold Prices Rise Amidst Anticipation of New Tariffs
Gold prices have experienced an uptick in early trading, coinciding with a decline in the value of the US dollar. Investors are keenly awaiting further details on President Donald Trump’s proposed customs duties, which could heighten global tensions.
As of 03:13 GMT, spot gold prices rose by 0.6% to reach $2,899.73 per ounce. This follows a record high of $2,942.70 per ounce recorded on February 11. Additionally, US gold futures increased by 0.4%, reaching $2,912.50 per ounce.
The dollar index currently hovers near a two-month low as investors assess US economic data that has fallen short of expectations. A weaker dollar effectively makes gold more affordable for holders of other currencies, providing a boost to its demand.
Calvin Wong, Chief Market Analyst for the Asia-Pacific region at Oanda, noted that the dollar’s weakness, combined with uncertainty regarding Trump’s approach to major trading partners and the implementation of tariff policies, supports gold prices.
On Friday, Trump reiterated his threats to impose customs duties, indicating that tariffs on automobiles would come into effect on April 2. Concurrently, senior officials from the Trump administration are set to engage in peace talks with Russian and Ukrainian negotiators in Saudi Arabia in the coming days.
Tim Water, Chief Market Analyst at K.C., stated, "If discussions between American and Russian officials improve the likelihood of a peace agreement that brings an end to the conflict, the demand for safe-haven assets may diminish, potentially causing gold to lose some of its upward momentum." However, he added, "With ongoing discussions about tariffs and rising inflation concerns, gold may continue to see upward movement despite a decrease in safe-haven demand."
Gold is traditionally regarded as a hedge against inflation and geopolitical instability.
Performance of Other Precious Metals
In related market movements, silver prices rose by 0.9% in spot transactions, reaching $32.41 per ounce after hitting its highest level since October 31, 2024, on Friday.
Platinum also experienced gains, increasing by 0.8% to $986.85 per ounce. Palladium recorded a notable rise of 2%, trading at $980.70 per ounce.
| Metal | Price (USD per ounce) | Change (%) |
|---|---|---|
| Gold | $2,899.73 | +0.6 |
| Silver | $32.41 | +0.9 |
| Platinum | $986.85 | +0.8 |
| Palladium | $980.70 | +2.0 |
This analysis reflects the current dynamics in the gold market amidst fluctuating dollar value and geopolitical uncertainties, highlighting the ongoing attractiveness of gold and precious metals as investment vehicles.
