Gold prices surged to a record high of $3,148.88 on Tuesday as investors sought the safe-haven asset amid concerns over US President Donald Trump’s planned tariffs on countries with a trade imbalance. Spot gold rose 0.3% at $3,132.53 per ounce and US gold futures increased by 0.4% to $3,164.20.
The uncertainty surrounding Trump’s tariff plans is driving demand for gold, said Ryan McIntyre, senior portfolio manager at Sprott Asset Management. The potential tariffs of around 20% on most US imports are seen as a geopolitical and economic risk, traditionally associated with gold.
Goldman Sachs raised its probability of a US recession to 35%, citing a low-interest rate environment that favors non-yielding bullion. The metal’s Relative Strength Index (RSI) stands above 70, indicating it is overbought, but investors continue to buy gold in anticipation of potential Fed rate cuts.
In other news, job openings fell to 7.568 million by the end of February, according to the Labor Department’s Bureau of Labor Statistics. The decrease follows economists’ expectations and may influence investor confidence. However, the non-farm payrolls report for Friday is yet to be seen as a key factor in determining the Fed’s rate cut trajectory.
Silver fell 0.8% to $33.79 an ounce, platinum dropped 0.9% at $983.64, while palladium gained 0.7% to $989.76.
Source: https://www.reuters.com/markets/commodities/gold-hits-all-time-high-trumps-tariff-plans-stir-inflation-worries-2025-04-01