Gold Edges Up on Weak US Dollar, Political Uncertainty
Gold prices edged higher on Wednesday, aided by a weaker U.S. dollar and political uncertainty following the latest import tariffs announced by U.S. President Donald Trump.
Spot gold firmed 0.1% $2,918.83 an ounce as of 0955 GMT after rising nearly 1% on Tuesday. Prices hit a record high of $2,956.15 on February 24 and have gained 11% so far this year.
U.S. gold futures rose 0.3% to $2,929.70.
"Uncertainty is food and water for gold and hence the bias on prices is to the upside," independent analyst Ross Norman said.
"Gold looks content to consolidate after recent gains, but with one eye firmly on the $3,000 level."
The dollar index (.DXY), dropped to a three-month low, making bullion more appealing to other currency holders.
In an address to Congress, Trump said further tariffs would follow on April 2, including "reciprocal tariffs" and non-tariff actions aimed at balancing out years of trade imbalances. This came just after he followed through on new 25% tariffs on imports from Mexico and Canada that took effect on Tuesday, along with a doubling of duties on Chinese goods to 20%.
Meanwhile, top bullion consumer China unlocked more fiscal stimulus, promising greater efforts to support consumption and cushion the impact of an escalating trade war with the United States.
Markets now await the ADP employment report due at 1315 GMT and U.S. nonfarm payrolls on Friday for cues on the U.S. interest rate trajectory.
"Geopolitical events and tariffs are currently overshadowing economic data... Significant deviations from market expectations would be needed to create meaningful movement, and any reaction to this week’s ADP and payrolls data is likely to be short-lived," said Zain Vawda, market analyst at MarketPulse by OANDA.
Spot silver advanced 1% to $32.32 an ounce, platinum gained 1% to $970.20, and palladium added 1% to $951.50.
Source : Reuters
