PRECIOUS-Gold climbs back toward record high as Trump auto tariffs stoke trade fears
- Trump unveiled 25% auto tariffs on Wednesday
- Gold hits its highest since March 20 record
- U.S. PCE data due on Friday
March 27 (Reuters) - Gold prices climbed back towards last week's record high on Thursday after U.S. President Donald Trump announced new tariffs on auto imports starting next week, escalating global trade tensions that have been driving safe-haven demand for gold.
Spot gold XAU= had jumped more than 1% to $3,053 an ounce as of 1215 GMT, just a few dollars away from the all-time high of $3,057.21 hit on March 20. U.S. gold futures GCcv1 climbed 1.3% to $3,062.
Gold, traditionally seen as a hedge against uncertainty and inflation, has risen more than 15% this year.
"Policymaking coming from the U.S. is driving huge amounts of uncertainty and gold, being the defensive, anti-fragile asset, is largely going up because of those uncertainties," Nitesh Shah, commodities strategist at WisdomTree, said.
Trump on Wednesday unveiled a 25% tariff on imported cars and light trucks, set to come into effect the day after he plans to announce reciprocal tariffs aimed at the countries responsible for the bulk of the U.S. trade deficit.
Traders are now looking to Friday's U.S. personal consumption expenditures data, the Federal Reserve's preferred inflation measure, to shed more light on the U.S. central bank's rate cut path.
The Fed held its benchmark interest rate steady last week but indicated it could cut rates later this year. Non-yielding bullion tends to thrive in a low interest-rate environment.
"We maintain our bullish stance on gold, though a consolidation is possible after the recent swift rally towards $3,040/oz," ANZ analysts said in a note.
Goldman Sachs on Wednesday raised its end-2025 gold price forecast to $3,300 per ounce from $3,100, citing stronger-than-expected ETF inflows and sustained central bank demand.
Spot silver XAG= rose 1.2% to $34.10 an ounce, platinum XPT= steadied at $973.75 and palladium XPD= added 0.7% to $974.51.
Spot gold price in USD per oz
Related Articles
VIX Off Its Highs — Is a U.S. Market Rebound Taking Shape?
TradingKey - The Cboe Volatility Index (VIX), widely regarded as Wall Street’s "fear gauge," has dropped sharply after briefly surging above 50 last week. It has since pulled back to the 30 range.
[Reuters Breakingviews] Trump kicks all of Asia into the China tariff boat
HONG KONG, April 3 (Reuters Breakingviews) - Donald Trump’s second trade war is a battle of one against all. Reciprocal tariffs announced on Wednesday by the White House hit China with a hike of 34 percentage points, taking the fresh levies on exports from the People’s Republic up 5...
Bank of Japan Interest Rate Decision Preview: Pause on Rate Hikes Already Priced In, Minimal Market Movement Expected on the Day
On 19 March 2025, the Bank of Japan (BoJ) will announce its March interest rate decision. The market widely expects the central bank to maintain its policy rate unchanged at 0.5%. We align with this consensus forecast.
US Dollar Outlook 2025: Will Investors Be Buying or Selling the Greenback?
TradingKey - Foreign exchange (FX) is a massive market. Daily, almost US$7 trillion in FX is traded, making it one of the biggest (and most liquid) markets in the world. Currencies also impact everything from businesses’ margins to trading relationships. In other words, they are impactful. The bigge
US Stock Market’s 2025 Outlook: Navigating the Shifting Landscape
TradingKey - Anyone who has invested in US stocks in 2024 will be happy. The US stock market has delivered an absolutely blockbuster performance so far this year, with the S&P 500 Index soaring 26.9% year-to-date (as of December 16), reaching record highs.