Gold Stays Steady After Tariff Confusion Supports Haven Demand
Gold held near a record after closing little changed in the previous session, as investors weighed President Donald Trump’s latest statements about his plans to enact tariff plans, including on the European Union.
Bullion traded near $2,920 an ounce, less than $40 shy of Monday’s all-time high, after Trump said his administration would impose tariffs of 25% on the EU, without clarifying whether they would affect all exports from the bloc or only certain products or sectors. The US president also said that levies on Mexico and Canada would come into force on April 2, rather than a previous target date of March 4.
Since coming back to power, Trump’s comments on the timing, size and targets of his tariffs have frequently confounded global markets and sparked skepticism over his policies. That confusion, along with disruptive geopolitical moves, has underscored bullion’s role as a store of value in uncertain times. Additionally, new research suggests the president’s planned levies on imports from China may hit the American economy more than official US trade data indicate.
The precious metal has also been supported in recent days by weak US data that’s seen traders resume fully pricing in two quarter-point interest rate cuts this year. Lower borrowing costs tend to benefit gold, as it doesn’t pay interest.
Looking ahead, investors will be analyzing Friday’s core personal consumption expenditures price index, the Fed’s preferred inflation gauge, for more clues about the monetary policy trajectory.
Spot gold was up 0.1% to $2,918.21 an ounce at 8:24 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver, platinum and palladium were all steady.
Source: Bloomberg
