Gold Prices Hold On To Comfortable Gains Above $3,100 Ahead Of US Tariff Announcement
Gold (XAU/USD) prices traded with a positive bias through the first half of the European session on Wednesday (02/03) and remained close to the all-time tops touched the previous day. Investors remained concerned about US President Donald Trump’s aggressive trade policies and its impact on the global economy. Moreover, persistent geopolitical tensions turned out to be a key factor that acted as a tailwind for the safe-haven bullion.
Furthermore, expectations that the Federal Reserve (Fed) will soon resume its interest rate-cutting cycle in the wake of the tariff-driven US economic slowdown provided additional support to the non-yielding Gold prices. This, along with a subdued US Dollar (USD) demand, contributed to the modest intraday uptick. However, XAU/USD bulls seemed reluctant to place any aggressive bets ahead of Trump’s reciprocal tariff announcement.
Source: FXStreet