Gold prices climbed further on Wednesday, building on record highs as investors sought safety ahead of potential US reciprocal tariffs. Spot gold rose 0.7% to $3,131.25 an ounce, after touching an all-time peak of $3,148.88 the previous day. US gold futures also gained 0.4% to $3,159.90. Analysts attribute the rally to geopolitical tensions, central bank demand, and expectations of Federal Reserve rate cuts.
Philip Newman, managing director of Metals Focus, noted that safe-haven buying remains the key driver, with no signs of easing uncertainty. He suggested that a US economic slowdown, rising inflation, and potential rate cuts could push gold to $3,300 in the coming months. The market is bracing for new US tariffs, dubbed “Liberation Day” by President Donald Trump, which could stoke inflation and escalate trade disputes—factors that typically bolster gold.
The White House has yet to disclose details of the tariffs, but their impact is already rippling through markets. Strong central bank demand, Middle East and Europe instability, and inflows into gold-backed ETFs have further fueled the rally. Aakash Doshi of State Street Global Advisors predicts gold could test $3,400 an ounce in a bullish scenario over the next nine months.
Meanwhile, Fed officials face a dilemma as employment concerns clash with inflation risks from tariffs. Traders are also watching the ADP employment report and Friday’s non-farm payrolls for clues on the economy’s health. Silver, platinum, and palladium also edged higher, reflecting broader precious metal strength.
Gold’s March performance—a 9% monthly gain, the largest since 2011—highlights its bullish momentum. Analysts warn that Trump’s tariff announcement could trigger volatility, with a “buy the rumor, sell the news” reaction possible. However, dips may be limited given ongoing geopolitical risks and economic fragility. Immediate resistance lies at $3,149, with $3,200 as the next target, while support holds firm at $3,100.
As the world awaits Trump’s next move, gold’s role as a hedge against uncertainty remains unchallenged, with the metal poised for further gains if turmoil persists.
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