Gold extends gain amid uncertainty over Trump's tariffs

Gold prices rose for a second straight session on Wednesday, buoyed by safe-haven demand as markets awaited further clarity on US President Donald Trump’s trade policies.

Spot gold was up 0.1% at $3,023.63 an ounce by 1102 GMT, while U.S. gold futures also rose 0.1% to $3,029.10.

A line chart titled “Spot gold price in USD per oz” that tracks the metric over time.

“It is the safe-haven function of gold which is providing support (to prices), and one of the reasons driving that is the U.S. tariffs policy,” Quantitative Commodity Research analyst Peter Fertig said.

Trump’s tariff policies are widely expected to weigh on economic growth and trigger further trade tensions. Trump said on Monday that automobile tariffs are coming soon, but indicated that not all of his threatened levies would be imposed on April 2 and some countries may get breaks.

Gold, traditionally seen as a hedge against uncertainty and inflation, has risen more than 15% this year and hit an all-time peak of $3,057.21 on March 20.

Fed Governor Adriana Kugler said on Tuesday that Federal Reserve interest rate policy remains well positioned, but progress on bringing inflation back to the central bank’s 2% target has slowed.

Investors are now awaiting data on U.S. personal consumption expenditures due on Friday.

“The PCE deflator is the yardstick for the Fed, and if it comes in at a moderate pace then speculation about further rate cuts in the U.S. might intensify and that would of course be a positive factor for gold,” Fertig said.

The Fed held its benchmark interest rate steady last week but indicated it could cut rates later this year. Non-yielding bullion tends to thrive in a low interest-rate environment.

“We are forecasting $3,200 by September,” ANZ Commodity Strategist Soni Kumari said, adding that any hawkish comment from the Fed could be a factor slowing gold’s rally.

Spot silver was flat at $33.75 an ounce, while platinum lost 0.5% to $971.55. Palladium added 0.1% to $957.01.