Fears of reciprocal tariffs imposed by U.S. President Donald Trump and the possibility of interest rate reduction by the Federal Reserve this year bolstered gold’s attractiveness as a safe haven, and the metal crept higher on Monday.
Spot gold At 0005 GMT, spot gold was up 0.1% at $3,025.12 an ounce. At $3,030.70, U.S. gold futures GOLD increased by 0.3%.
Last Thursday, when demand for safe haven assets increased due to trade worries, gold hit a record high of $3,057.21 per ounce. A hedge against inflation, economic uncertainty, and geopolitical unrest is zero-yield bullion.
Trump announced a wave of reciprocal tariffs that would go into effect on April 2; these tariffs are expected to slow economic development and increase inflation. As a result, they will continue to be in the news.
As predicted, the Fed maintained its target rate in the 4.25%–4.50% range last week. By year’s end, policymakers anticipate two quarter-percentage-point cuts from the U.S. central bank.
John Williams, president of the New York Federal Reserve, stated on Friday that there is no pressing need to alter interest rates and that the U.S. central bank’s monetary policy is appropriate in light of the numerous economic uncertainties.
As demand declined following a spike in spot prices that broke previous records, physical gold discounts in India reached a more than eight-month high last week.
