Gold Prices Surge Above $3,033 Amid Rising Trade Tensions
U.S. tariffs on imported vehicles spur gold prices as markets brace for potential economic fallout.
Gold prices rose today, surpassing $3,033 per ounce after U.S. tariffs on automobiles exacerbated global trade tensions.
As of 05:35 GMT, spot gold increased by 0.5% to reach $3,033.20 per ounce, while U.S. gold futures rose by 0.6% to $3,039.
The announcement by U.S. President Donald Trump on Wednesday regarding a 25% tariff on imported cars and light trucks is set to take effect next week, expanding the scope of the ongoing global trade war.
Traders express concerns that retaliatory tariffs anticipated on April 2 could lead to inflationary pressures and impede economic growth, further heightening trade tensions.
This uncertainty has propelled gold prices to a record high of $3,057.21 on March 20. Akash Dua, Global Head of Gold for Sprott ETF Strategies, forecasts the price of gold could exceed $3,100 in the second quarter and suggests a potential market increase between 8% and 10% by the end of 2025, contingent on favorable macroeconomic and spot market conditions for the precious metal.
Goldman Sachs raised its projections for gold prices by the end of 2025 from $3,100 to $3,300 per ounce, attributing this adjustment to better-than-expected inflows into exchange-traded funds and sustained demand from central banks.
Investors are awaiting the release of U.S. personal consumption expenditures data tomorrow, which may provide further insights into the trajectory of U.S. interest rates.
Last week, the Federal Reserve maintained interest rates but indicated the possibility of future cuts later in the year, a scenario that typically benefits non-yielding assets like gold.
Neel Kashkari, President of the Minneapolis Fed, stated that while significant progress has been made in reducing inflation, further efforts are necessary to achieve the Fed's target inflation rate of 2%.
In the broader context of precious metals, silver saw a slight decline of 0.1%, settling at $33.68 per ounce.
Platinum dropped by 0.3% to $971.60, and palladium fell by 0.4% to $964.01.
As of 05:35 GMT, spot gold increased by 0.5% to reach $3,033.20 per ounce, while U.S. gold futures rose by 0.6% to $3,039.
The announcement by U.S. President Donald Trump on Wednesday regarding a 25% tariff on imported cars and light trucks is set to take effect next week, expanding the scope of the ongoing global trade war.
Traders express concerns that retaliatory tariffs anticipated on April 2 could lead to inflationary pressures and impede economic growth, further heightening trade tensions.
This uncertainty has propelled gold prices to a record high of $3,057.21 on March 20. Akash Dua, Global Head of Gold for Sprott ETF Strategies, forecasts the price of gold could exceed $3,100 in the second quarter and suggests a potential market increase between 8% and 10% by the end of 2025, contingent on favorable macroeconomic and spot market conditions for the precious metal.
Goldman Sachs raised its projections for gold prices by the end of 2025 from $3,100 to $3,300 per ounce, attributing this adjustment to better-than-expected inflows into exchange-traded funds and sustained demand from central banks.
Investors are awaiting the release of U.S. personal consumption expenditures data tomorrow, which may provide further insights into the trajectory of U.S. interest rates.
Last week, the Federal Reserve maintained interest rates but indicated the possibility of future cuts later in the year, a scenario that typically benefits non-yielding assets like gold.
Neel Kashkari, President of the Minneapolis Fed, stated that while significant progress has been made in reducing inflation, further efforts are necessary to achieve the Fed's target inflation rate of 2%.
In the broader context of precious metals, silver saw a slight decline of 0.1%, settling at $33.68 per ounce.
Platinum dropped by 0.3% to $971.60, and palladium fell by 0.4% to $964.01.
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