Following a 25% levy on imported vehicles and light trucks that sparked a worldwide trade uptick, worries about U.S. President Donald Trump’s intentions to implement reciprocal tariffs next week caused gold to rise on Thursday.
As of 00:26 GMT, pot gold GOLD increased 0.1% to $3,022.69 an ounce. The price of U.S. gold futures, GOLD, increased 0.2% to $3,026.70.
Trump intensified the global trade battle on Wednesday by announcing a 25% tariff on imported vehicles and light trucks that would take effect next week.
Investors were concerned that Trump’s reciprocal tariffs, which are anticipated to go into force on April 2, would increase trade tensions, hinder economic growth, and fuel inflation.
On March 20, worries over Trump’s tariff proposals sent gold soaring to a record high of $3,057.21.
Neel Kashkari, president of the Minneapolis Federal Reserve Bank, stated that although the U.S. central bank has made significant strides in reducing inflation, “we have more work to do” in order to get inflation down to the Fed’s 2% objective.
Although the central bank said it would lower rates later this year, it kept the benchmark interest rate unchanged last week. Bullion that does not yield is more likely to prosper while interest rates are low.
The U.S. personal consumption expenditure data, which is coming on Friday, will be closely watched by markets as it may provide more insight on the direction of interest rates in the country.
In the meanwhile, Goldman Sachs increased its projection for the price of gold by the end of 2025 from $3,100 to $3,300 per ounce on Wednesday, citing continuing central bank demand and stronger-than-expected ETF inflows.
Spot palladium XPDUSD1! dropped 0.5% to $963.05. Platinum PL1! declined 0.1% to $973.43, and silver XAGUSD1! dropped 0.1% to $33.69 an ounce.
