LONDON: Gold prices edged higher on Tuesday amid persistent uncertainty over impending reciprocal US tariffs and their impact on the global economy. Spot gold rose 0.3% to $3,020.73 an ounce, as of 1157 GMT. US gold futures firmed 0.3% at $3,024.40.
Gold hit a record high of $3,057.21 on March 20. US President Donald Trump said not all of his threatened levies would be imposed on April 2 and some countries may get breaks. The market expects Trump’s tariffs to hinder economic growth.
“Expectations that the Federal Reserve will cut rates again soon, along with fears of a slowdown in the economy, continue to support gold prices,” said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades.
“I expect gold prices to remain supported above the key psychological level of $3,000, with traders likely to view any dips as buying opportunities. However, the upside may be constrained by a resurgence in risk appetite, creating significant resistance around the highs of $3,056 reached last week.”
Investors now await the US Personal Consumption Expenditures data, due on Friday, the Fed’s preferred inflation measure, for hints on further policy moves.
The US central bank held its benchmark interest rate steady last week but indicated that it could cut rates by a quarter-percentage-point later this year.
Bullion is seen as a hedge against geopolitical and economic uncertainties and often thrives in a low-interest-rate environment as it yields no interest.
On the geopolitical front, Ukrainian and US delegations are scheduled to meet in Saudi Arabia on Tuesday following Russia-US talks there a day earlier on a limited Black Sea ceasefire proposal that Washington hopes will open the way for broader peace negotiations.
Spot silver gained 1.3% to $33.41 an ounce, platinum added 0.8% to $981.10 and palladium was up 1% at $960.67.
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