Gold rises on safe-haven demand amid Trump tariff worries
Gold prices rose on Tuesday, supported by safe-haven demand amid uncertainty over U.S. President Donald Trump's tariff plans for next week that could potentially boost inflation.
Spot gold was up 0.3% at $3,021.88 an ounce at 12:51 p.m. ET (1751 GMT). U.S. gold futures settled 0.3% higher at $3,025.90.
"Investors are concerned about the state of the world, especially with U.S. policies being what they are, and so they're buying gold as an alternative asset because they're concerned that the U.S. government may throw the world into a global recession," said Jeffrey Christian, managing partner of CPM Group.
Gold, traditionally seen as a hedge against geopolitical and economic uncertainties, has risen more than 15% this year and reached an all-time peak of $3,057.21 on March 20.
Trump has said not all of his threatened levies would be imposed on April 2 and some countries may get breaks. The Financial Times said the president is considering a two-step tariff regime next week.
Trump's tariff policies are widely expected to weigh on economic growth, trigger further trade tensions, and drive up inflation.
Investors now await the U.S. Personal Consumption Expenditures data, due on Friday, for hints on further Fed's policy moves.
"The odds of rate cuts seem to be backing off a little bit and I think overall it's still really bullish for (an) inflationary metal like gold ... I would say next level up is probably around $3,125," said Daniel Pavilonis, senior market strategist at RJO Futures.
Meanwhile, the United States said that it has made separate agreements with Ukraine and Russia to ensure safe navigation in the Black Sea and to implement a ban on strikes against energy facilities in the two countries.
Spot silver gained 1.9% to $33.61 an ounce, platinum added 0.5% to $978.15 and palladium added 0.4% to $955.0.
Source: Reuters
