Investors are also awaiting the automobile tariffs, which will take effect on Apr 3
[BENGALURU] Gold prices advanced on Wednesday (Apr 2) as anxious investors flocked to the safe-haven metal, bracing for announcements on US reciprocal tariffs that could escalate the global trade war.
Spot gold was up 0.3 per cent at US$3,120.64 an ounce, as at 0026 GMT, after hitting an all-time high of US$3,148.88 in the previous session.
US gold futures were up 0.2 per cent at US$3,151.80.
Suspense hangs over the market as uncertainty is looming large over the details of the US tariffs slated for imposition later in the day, which Trump has dubbed “Liberation Day”. The White House confirmed new tariffs will be imposed, though it provided no details on the size or scope.
Investors are also awaiting the automobile tariffs, which will take effect on Apr 3.
Trump’s tariff policies could ratchet up inflation, potentially putting the brakes on economic growth and escalating trade disputes.
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Gold, viewed as a safeguard against economical and political uncertainties, typically flourishes in an environment of low interest rates.
Disappointing new US jobs data and a weak manufacturing report highlight an emerging concern among Federal Reserve officials that employment could slip, while the threat of tariff-driven inflation limits their ability to do anything about it.
Investors are also awaiting ADP employment report due later in the day, and non-farm payrolls report on Friday, that could provide insights into the Fed’s future path for interest rate cuts.
Spot silver eased 0.3 per cent to US$33.64 an ounce, while platinum firmed 0.6 per cent to US$985.30 and palladium was steady at US$983.50. REUTERS
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