NEW YORK: Gold prices declined slightly on Wednesday amid uncertainty over the tariffs announced by US President Donald Trump this week, and as focus shifts to Friday’s payrolls data for a steer on the Federal Reserve’s next monetary policy move.
Spot gold was down 0.15% at $2,913.15 per ounce by 1325 GMT. Prices hit a record high of $2,956.15 on February 24 and have gained 11% so far this year. US gold futures rose 0.1% to $2,924.30 per ounce “Uncertainty is food and water for gold and hence the bias on prices is to the upside,” Ross Norman, an independent analyst, said. “Gold looks content to consolidate after recent gains, but with one eye firmly on the $3,000 level.”
In an address to Congress, Trump said further tariffs would follow on April 2, including “reciprocal tariffs” and non-tariff actions aimed at balancing out years of trade imbalances.
This follows new 25% tariffs on imports from Mexico and Canada, along with a doubling of duties on Chinese goods to 20%. Meanwhile, top bullion consumer China unlocked more fiscal stimulus, promising greater efforts to support consumption and cushion the impact of an escalating trade war with the US. Markets now await US non-farm payrolls on Friday for cues on the US interest rate trajectory. “Geopolitical events and tariffs are currently overshadowing economic data.
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