Gold prices firmed on Tuesday, holding near a record peak hit in the previous session, as lingering US tariffs on China and inflation concerns boosted safe-haven demand, while attention also turned to key jobs data set to be released this week.
Spot gold was up 0.3% at $2,820.94 per ounce, as of 0436 GMT, after hitting a record high of $2,830.49 on Monday.
US gold futures fell 0.2% to $2,851.40 on Tuesday. US President Donald Trump suspended tariffs on Mexico and Canada on Monday, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two countries, while levies on Chinese goods are due to start soon.
The market perceives Trump’s tariff policies as inflationary.
“In the current highly dynamic environment, where market volatility and policy flip-flops are likely to dominate, gold prices may continue to stay supported,” IG market strategist Yeap Jun Rong said.
“With near-term price projection target at the $2,874 level, followed by the psychological $3,000 level.”
Bullion is traditionally considered a hedge against both inflation and geopolitical uncertainty.
Gold continues record breaking rally, reaches Rs292,400/tola in Pakistan
Meanwhile, global bullion banks are flying gold into the United States from trading hubs catering to Asian consumers, including Dubai and Hong Kong, to capitalize on the unusually high premium that US gold futures are enjoying over spot prices.
Also, on investor radar this week include a series of US jobs data, which include US job openings data due later in the day, ADP employment report on Wednesday, and payrolls report on Friday.
Among other metals, spot silver edged higher 0.2% to $31.48 per ounce, platinum added 0.4% to $967.93, and palladium gained 1.3% to $1,022.09.
Markets in China, the top gold consumer, were closed for the Lunar New Year holiday and will resume trade on Wednesday.
Comments
Comments are closed for this article.