Gold Nears Record Amid Tariff Uncertainty Eyes $3,150 Forecast
Spot gold gained 0.3% to $2,940.99 an ounce, as of 0856 GMT, about $16 shy from the record peak. Due to the economic uncertainty caused by U.S. tariffs, spot gold hit a record high of $2,956.15 on February 24.
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U.S. gold futures were up 0.1% at $2,950.80.
A line chart titled “Spot gold price in USD per oz” tracks the metric over time.
“Gold continues to be supported by the prospect of a tariff-driven economic slowdown, potentially bringing forward U.S. Fed rate cut expectations,” Ole Hansen, head of commodity strategy at Saxo Bank, said.
“I maintain my bullish stance on gold, expecting an economic slowdown or even stagflation to drive demand and price of gold higher.”
U.S. President Donald Trump’s fluctuating trade policies – imposing and delaying tariffs on Canada and Mexico, while raising duties on Chinese goods – have roiled the global financial markets. In response, China and Canada hit back with tariffs of their own.
Data on Wednesday showed consumer prices cooling more than analysts’ expectations, keeping hopes alive that the Fed could cut its interest rate this year.
The Fed last year cut rates by 100 basis points, but has held steady since then. Investors prefer non-yielding gold in a low interest rate environment.
Macquarie raised its gold price forecast to $3,150 per ounce for third quarter and sees single point price high of $3,500 this year.
“We have upgraded our annual silver price forecasts by 2-4%, on account of the metal’s precious characteristics, despite downgrading our industrial supply-demand balance,” it added.
Investors now await the U.S. Producer Price Index (PPI) data due at 1230 GMT for further insights into the Fed’s monetary policy.
Spot silver fell 0.6% to $33.03 an ounce, platinum lost 1.2% to $972.70, while palladium dropped 0.5% to $944.07.
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