PRECIOUS-Gold edges up as tariff uncertainty continues to grip markets
- U.S. PCE index due on Friday
- Not all levies will be imposed on April 2, Trump says
- Expect gold to remain supported above $3,000 level, analyst says
By Rahul Paswan
March 25 (Reuters) - Gold prices edged higher on Tuesday amid persistent uncertainty over impending reciprocal U.S. tariffs and their impact on the global economy.
Spot gold XAU= rose 0.3% to $3,020.73 an ounce, as of 1157 GMT. U.S. gold futures GCcv1 firmed 0.3% at $3,024.40.
Gold hit a record high of $3,057.21 on March 20. GOL/
U.S. President Donald Trump said not all of his threatened levies would be imposed on April 2 and some countries may get breaks. The market expects Trump's tariffs to hinder economic growth.
"Expectations that the Federal Reserve will cut rates again soon, along with fears of a slowdown in the economy, continue to support gold prices," said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades.
"I expect gold prices to remain supported above the key psychological level of $3,000, with traders likely to view any dips as buying opportunities. However, the upside may be constrained by a resurgence in risk appetite, creating significant resistance around the highs of $3,056 reached last week." MKTS/GLOB
Investors now await the U.S. Personal Consumption Expenditures data, due on Friday, the Fed's preferred inflation measure, for hints on further policy moves.
The U.S. central bank held its benchmark interest rate steady last week but indicated that it could cut rates by a quarter-percentage-point later this year.
Bullion is seen as a hedge against geopolitical and economic uncertainties and often thrives in a low-interest-rate environment as it yields no interest.
On the geopolitical front, Ukrainian and U.S. delegations are scheduled to meet in Saudi Arabia on Tuesday following Russia-U.S. talks there a day earlier on a limited Black Sea ceasefire proposal that Washington hopes will open the way for broader peace negotiations.
Spot silver XAG= gained 1.3% to $33.41 an ounce, platinum XPT= added 0.8% to $981.10 and palladium XPD= was up 1% at $960.67.
Spot gold price in USD per oz
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