Gold prices surged to a new all-time high on Tuesday, with investors flocking to the precious metal in anticipation of US President Donald Trump’s upcoming announcement on global tariffs.
Spot gold rose 0.1 percent to $3,125.69 an ounce at 0745 GMT, having touched a peak of $3,148.88 earlier in the day. US gold futures also climbed 0.1 percent to $3,153.40. Analysts attribute the rally to concerns over potential trade restrictions, with investors seeking to hedge against possible market volatility caused by Trump’s tariff announcement set for Wednesday. Traders are now eyeing a potential retest of the $3,200 level.
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This rally marks gold’s strongest quarterly performance since 1986, driven by continued demand from central banks, expectations of interest rate cuts by the US Federal Reserve, and geopolitical tensions in the Middle East and Europe. Additionally, increased inflows into gold-backed exchange-traded funds (ETFs) have contributed to the surge.
Despite some technical indicators suggesting that gold may be overbought, analysts believe uncertainty surrounding future tariffs, especially on automobiles set to take effect on April 3, could sustain demand for gold in the near term.
Meanwhile, silver fell 0.7 percent to $33.83 an ounce, platinum dropped 0.9 percent to $984.25, and palladium edged up 0.4 percent to $986.79.
