Gold Rises as Investors Assess U.S. Outlook, Tariffs
Gold climbed back above $2,900 an ounce as a global selloff that rocked Wall Street lost momentum, even as investors remained concerned about the U.S. economic outlook.
Bullion rose after falling slightly on Monday, when President Donald Trump’s signal that the economy could suffer first as he reshaped trade policy with tariffs stoked concerns about a potential recession. The precious metal — a traditional safe haven — can face selling pressure during a sudden market selloff.
Gold has risen 11% this year, hitting back-to-back records. The rally has been fueled by concerns about disruptions caused by the Trump administration, central bank buying and speculation the Federal Reserve could cut interest rates further. Lower borrowing costs tend to benefit non-yielding bullion. While bullion’s rally has dampened demand for the physical metal in some of Asia’s leading economies, it has been accompanied by steady investment flows into gold-backed exchange-traded funds.
It hit its highest level since December 2023 last week, according to Bloomberg calculations. “Gold finds itself without a solid physical market base” amid sluggish demand in India and China, Standard Chartered Plc analyst Suki Cooper said in a note. Still, prices are expected to hit fresh highs this year, with stronger flows into ETFs needed to offset the decline in physical demand, he said. Spot gold was up 0.4% at $2,900.78 an ounce at 7:30 a.m. in London. The Bloomberg Dollar Spot Index fell 0.2%. Silver and palladium edged up, while platinum was little changed.
Source: Bloomberg
