Gold hits all-time high amid tariff concerns

01/04/2025 Argaam

Gold bars


Gold prices hit an all-time high on Tuesday amid strong demand for safe havens driven by concerns that US retaliatory tariffs might fuel inflationary pressures and hinder economic growth.

 

At 5:50 GMT, spot gold rose 0.6% to $3,143.05 per ounce, after hitting a record high of $3,148.88 earlier in the session.

 

Gold futures also gained 0.6% to reach $3,169.50 per ounce.

 

In the previous session, gold prices recorded their highest quarterly performance since 1986.

 

"The anticipation of the April 2 US reciprocal tariffs has led market participants to lean towards a defensive stance, with some de-risking and turning to safe-haven gold as a hedge against impending portfolio volatility," IG market strategist Yeap Jun Rong said.

 

The uncertainty could sustain gold's traction for now, with buyers eyeing a retest of the $3,200 level, Rong added.

 

US President Donald Trump pledged to announce a comprehensive tariff plan on April 2, which he has dubbed the “Liberation Day.” The retaliatory tariffs are expected to target all countries.

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