Spot Gold gained for a second straight day on Wednesday, while holding within striking distance of record highs, ahead of the upcoming round of US tariffs, which has kept market players on edge.
The Trump administration’s reciprocal tariffs are set to take effect on April 2nd, which many believe may stoke inflation and hinder GDP growth.
“There are real concerns around U.S. economic growth and as well as inflation. U.S. is likely to face a stagflationary scenario, and that could support prices,” Soni Kumari, commodity strategist at ANZ, was quoted as saying by Reuters.
The latest data by the Conference Board showed US consumer confidence had dropped to a 12-year low in March, underscoring a growing unease among Americans regarding the nation’s economic health and their personal financial outlook.
Several Federal Reserve officials are expected to make speeches later on Wednesday, while investors will be looking for more insights into the central bank’s monetary policy this year amid tariff uncertainty.
In addition, 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 up 0.34% on the day to trade at $3,030.43 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.
Gold recorded an all-time high of $3,057.21 per troy ounce on March 20th.