Gold Prices Surge Amid Trade Uncertainty
Gold maintained its upward trajectory on Tuesday as concerns over U.S. trade policies under President Donald Trump intensified market demand for safe-haven assets, amid fears of a potential global trade war.
As of 03:01 GMT, gold prices in spot transactions rose by 0.2% to $2,903.56 per ounce. Meanwhile, gold futures in the United States experienced a larger increase, climbing 0.6% to $2,916.80 per ounce.
According to analysts at Capital Kom, the surge in demand can be attributed to significant purchases by central banks. "There appears to be an increasing rush to acquire gold in the United States, driven by apprehensions over possible customs tariffs which may lead to a supply shortage in Europe," they commented.
The urgency surrounding gold acquisitions follows President Trump’s recent announcements regarding tariffs. On Friday, he instructed his team to evaluate customs duties on every country that charges fees to the United States. Since assuming office, Trump has enacted a 10% tariff on Chinese imports and introduced a 25% tariff on goods from Mexico. Additionally, tariffs have been set on energy-related imports from Canada, and there are plans to impose 25% tariffs on aluminum and steel imports, further escalating trade tensions.
Monetary policy insights are expected later today from two Federal Bureau of Investigation officials, which could shed light on broader economic implications.
Goldman Sachs has revised its forecast for gold prices, now projecting an increase to $3,100 per ounce by the end of 2025, up from a prior estimate of $2,890. This revision is driven by heightened demand from central banks for the precious metal.
In related metal markets, silver prices fell 1.5% to $32.30 per ounce, while platinum saw a modest rise of 0.7% to $981.86, and palladium increased by 1.3% to $974.75 per ounce.
| Metal | Price (USD) | Change (%) |
|---|---|---|
| Gold | $2,903.56 | +0.2% |
| Gold Futures | $2,916.80 | +0.6% |
| Silver | $32.30 | -1.5% |
| Platinum | $981.86 | +0.7% |
| Palladium | $974.75 | +1.3% |
As market sentiment continues to evolve around trade developments and monetary policy, investors are closely monitoring the implications for precious metals and overall market stability.
