Spot Gold held mostly steady within a tight range on Tuesday, as uncertainty regarding the upcoming round of US tariffs continued to drive safe-haven flows.
“Uncertainty remains over the extent and scope of upcoming U.S. reciprocal tariffs … gold continues to find some support as a hedge against potential surprises,” IG market strategist Yeap Jun Rong was quoted as saying by Reuters.
The Trump administration’s reciprocal tariffs are set to take effect on April 2nd, which many believe may stoke inflation and hamper GDP growth.
However, US President Trump has indicated the reciprocal tariffs may potentially be less severe than feared. Markets took that as a sign of flexibility, which trimmed overall anxiety to an extent.
Meanwhile, Atlanta Federal Reserve President Raphael Bostic said he expected progress on inflation to slow in the months ahead. Therefore, he now expects just a 25 basis point rate cut by the end of this year.
US PCE inflation figures, due out on Friday, may provide more clues on the Federal Reserve’s interest rate cut path.
Spot Gold was last little changed on the day to trade at $3,013.55 per troy ounce.
Uncertainty surrounding US tariffs, potential rate cuts and escalating Middle East tensions have fueled Gold’s rally to a series of record highs this year. Year-to-date, the yellow metal has surged 15%.
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