Gold continues to trade close to its highest-ever price after minimal changes yesterday. Investors are carefully examining President Donald Trump's recent statements about his tariff plans, especially those affecting European Union exports.
The precious metal trades around $2,920 per ounce, approximately $40 below the record price set Monday. Trump recently announced plans for 25% tariffs against the EU but didn't specify whether these would apply to all exports or just certain products. He also pushed back the implementation date for tariffs on Mexico and Canada to April 2, later than his previous March 4 target.
Since returning to office, Trump's statements about timing, size, and targets of tariffs have created confusion across global markets, leading many to question the consistency of his trade policies. This uncertainty, combined with ongoing geopolitical tensions, highlights gold's importance as a safe investment during unpredictable times.
New research indicates that Trump's planned tariffs on Chinese imports might impact the American economy more severely than what official US trade statistics suggest.
Gold prices have also benefited from disappointing US economic data, which has prompted traders to anticipate two quarter-percentage-point interest rate reductions this year fully. Gold typically performs better when interest rates decrease because, unlike other investments, it generates no interest income.
Looking forward, market participants will analyze Friday's core personal consumption expenditures price index—the Federal Reserve's preferred measure of inflation—for additional insights into future monetary policy decisions. As of 8:24 a.m. Singapore time, spot gold increased 0.1% to $2,918.21 per ounce.
The Bloomberg Dollar Spot Index remained unchanged. Prices for silver, platinum, and palladium also held steady.
The precious metal trades around $2,920 per ounce, approximately $40 below the record price set Monday. Trump recently announced plans for 25% tariffs against the EU but didn't specify whether these would apply to all exports or just certain products. He also pushed back the implementation date for tariffs on Mexico and Canada to April 2, later than his previous March 4 target.
Since returning to office, Trump's statements about timing, size, and targets of tariffs have created confusion across global markets, leading many to question the consistency of his trade policies. This uncertainty, combined with ongoing geopolitical tensions, highlights gold's importance as a safe investment during unpredictable times.
New research indicates that Trump's planned tariffs on Chinese imports might impact the American economy more severely than what official US trade statistics suggest.
Gold prices have also benefited from disappointing US economic data, which has prompted traders to anticipate two quarter-percentage-point interest rate reductions this year fully. Gold typically performs better when interest rates decrease because, unlike other investments, it generates no interest income.
Looking forward, market participants will analyze Friday's core personal consumption expenditures price index—the Federal Reserve's preferred measure of inflation—for additional insights into future monetary policy decisions. As of 8:24 a.m. Singapore time, spot gold increased 0.1% to $2,918.21 per ounce.
The Bloomberg Dollar Spot Index remained unchanged. Prices for silver, platinum, and palladium also held steady.
