AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Gold remains firm amid tariff policy uncertainty.
- Market confusion over new trade levies supports bullion.
- Weaker US data revives expectations of rate cuts.
Gold prices remained close to record highs as investors assessed the latest tariff-related developments. The market reaction followed statements from former US President Donald Trump, who reiterated plans to impose a 25% tariff on the European Union but did not specify which products or sectors would be affected. This lack of clarity has fueled uncertainty across global markets, reinforcing gold’s appeal as a safe-haven asset.
The metal traded near $2,920 per ounce, holding just under $40 from its all-time high earlier in the week. In addition to potential tariffs on the EU, Trump confirmed that levies on Mexico and Canada would take effect on April 2, revising an earlier implementation date of March 4.
Since returning to political prominence, Trump’s trade policies have kept investors on edge, particularly regarding their timing and economic impact. His latest stance on tariffs, combined with broader geopolitical tensions, has strengthened gold’s role as a reliable store of value. Recent research also suggests that the proposed tariffs on Chinese imports could have a greater impact on the US economy than official trade data indicates.
Apart from trade policy concerns, recent economic indicators have further bolstered gold’s position. Weak US economic data has led market participants to anticipate two quarter-point interest rate cuts this year. Lower borrowing costs typically enhance gold’s attractiveness, as the metal does not yield interest, making it a preferred asset during periods of declining rates.
Elsewhere in the market, the uncertainty surrounding global trade has also influenced major financial stocks such as (NYSE:JPM), (NASDAQ:GS), and (NYSE:MS), with investors closely monitoring policy shifts for potential economic ramifications. Meanwhile, mining companies such as (NYSE:NEM) and (TSX:ABX) have seen steady movements amid continued demand for precious metals.
The evolving trade landscape and shifting economic policies are expected to keep gold in focus as investors navigate ongoing uncertainties. With key tariff decisions still unfolding, market sentiment remains sensitive to further developments that could influence the broader financial landscape.
