Tuesday saw a slight increase in gold prices from a low of almost four weeks earlier in the day, as demand for safe-haven assets was boosted by growing worries about the global trade war between the US and its major trading partners.
As of 00:32 GMT, spot gold was up 0.3% at $2,990.48 an ounce. On Monday, the price of gold fell to its lowest level since March 13. Gold futures in the US increased 1.1% to $3,004.70.
U.S. President Donald Trump’s wide tariffs launched a global trade war that intensified Monday as the European Union suggested counter-tariffs and Trump vowed to raise levies on China.
Trump stated that he will talk to China, Japan, and other nations about the tariffs, but he was not thinking of pausing them to allow for talks with trading partners.
On April 3, gold, a secure investment amid uncertain political and economic times, reached its highest point ever, $3,167.57.
The minutes of the U.S. Federal Reserve’s most recent policy meeting, which are expected to be released on Wednesday, will be eagerly watched by markets.
Amid growing concerns about the global trade war and recession, traders also expect U.S. interest rate indications from the Producer Price Index on Friday and the U.S. Consumer Price Index data, which is coming on Thursday.
Futures currently predict that the U.S. Federal Reserve will lower interest rates by around 93 basis points by December. (FEDWATCH)
In other metals, palladium (XPDUSD1!) dropped 0.9% to $910.50, platinum (PL1!) strengthened 0.6% to $918.55, and spot silver (XAGUSD1!) dropped 0.1% to $30.08 an ounce.
