While nervous investors watched the intensifying trade war between the United States and its major trading partners amid growing concerns of a worldwide recession, gold prices dipped on Wednesday as U.S. Treasury rates slightly increased.
The spot price of gold dropped 0.1% to $2,981.86 per ounce at 00:24 GMT. On April 3, it hit a record high of $3,167.57. At $2,995.20, U.S. gold futures GOLD increased by 0.2%.
Gold that doesn’t yield was less appealing when the benchmark 10-year note yield, US10Y, reached a high of more than a week.
At 12:01 a.m. Eastern Time (0401 GMT), the White House explained, country-specific tariffs of up to 50% will go into effect as scheduled.
In response to Beijing’s retaliatory tariffs, U.S. President Donald Trump increased charges on Chinese goods to 104%, which means the tariffs will be particularly high for China. China has promised to “fight to the end” and defied what it described as blackmail.
The latest central banker in the United States to state that there is no urgency to lower interest rates was Mary Daly, president of the San Francisco Federal Reserve Bank, on Tuesday.
The minutes of the most recent policy meeting of the U.S. Federal Reserve are anticipated later in the day, and markets are anticipating them.
In addition, traders anticipate the Producer Price Index data on Friday and the U.S. Consumer Price Index data on Thursday, which will provide important clues about the Fed’s rate trajectory.
In January-March 2025, physically backed gold exchange-traded funds (ETFs) saw their biggest quarterly inflow in three years, according to data from the World Gold Council (WGC).
Spot silver XAGUSD1! dropped 1.1% to $29.52 an ounce, palladium XPDUSD1! retreated 1% to $897.50, and platinum PL1! dropped 1% to $912.35.
