Gold Rallies Amid Trade Uncertainty and Central Bank Demand
Gold prices extended their rally on Tuesday, as investor concerns over U.S. President Donald Trump’s evolving tariff policies spurred demand for safe-haven assets.
Gold Market Update
Spot gold rose 0.2% to $2,903.56 (as of 0301 GMT).
U.S. gold futures gained 0.6%, trading at $2,916.80.
Kyle Rodda, financial market analyst at Capital.com, noted:"There seems to be a rush to secure gold in the U.S. before potential tariffs, and we’re seeing significant central bank buying. The fundamentals remain bullish."
Macroeconomic Factors Driving Gold
Trade Uncertainty:
Since his inauguration, Trump has imposed tariffs on Chinese imports, delayed 25% duties on goods from Mexico and Canada, and is planning reciprocal tariffs on all nations taxing U.S. imports.
This has heightened fears of a global trade war, prompting investors to hedge risks with gold.
U.S. Federal Reserve Outlook:
Fed Governor Michelle Bowman stated that she requires more confidence in inflation easing before considering another interest rate cut.
Two additional Fed officials are set to speak later today, providing further insights into the monetary policy outlook.
Goldman Sachs Raises Price Forecast
Investment bank Goldman Sachs has revised its 2025 gold price forecast upward to $3,100 per ounce (from $2,890), citing:✅ Robust central bank demand✅ Persistent economic uncertainties
Other Precious Metals Performance
Silver fell 1.5% to $32.30/oz
Platinum rose 0.7% to $981.86/oz
Palladium climbed 1.3% to $974.75/oz
With economic and geopolitical risks mounting, gold remains a key asset for investors navigating uncertainty.
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