As investors braced themselves for U.S. President Donald Trump’s expansive reciprocal tariff proposals, which they believe would exacerbate inflation and impede economic expansion, gold prices remained stable on Wednesday.
The spot price of gold remained stable at $3,020.87 per ounce as of 00:26 GMT. The price of US gold futures, GOLD, remained steady at $3,025.10.
Fears of a potential recession and increased inflation brought on by tariffs caused U.S. consumer confidence to plummet to its lowest level in almost four years in March.
The market is now apprehensive due to the focus on possible reciprocal tariffs that the U.S. government may implement on April 2.
Trump’s tariff plans might hinder economic development and exacerbate trade tensions since they are likely to cause inflation.
Gold has increased 15% this year, reaching an all-time high of $3,057.21 on March 20. Gold is typically viewed as a hedge against geopolitical and economic uncertainty.
As tariff uncertainty looms, a number of Federal Reserve officials are scheduled to speak later in the day, providing further details on this year’s monetary policy.
The markets are looking for hints about the Fed’s future actions in Friday’s U.S. Personal Consumption Expenditures data.
In terms of geopolitics, the United States and Russia established agreements on Tuesday to stop attacking energy targets and at sea, with Washington promising to work towards lifting certain sanctions on Moscow.
Silver spot price XAGUSD1! dropped 0.3% to $33.65 an ounce, while platinum spot price PL1! decreased 0.1% to $975.96. Palladium XPDUSD1 remained stable at $956.12.
