Gold prices remained near $2,920 an ounce, just shy of Monday’s all-time high, as uncertainty surrounding U.S. tariffs continued to drive demand for safe-haven assets. President Donald Trump’s latest tariff threats—25% levies on the European Union and an extension for Mexico and Canada—have added to the confusion in global markets. Trump’s comments, which lacked clarity on whether the tariffs would target all exports or specific sectors, contributed to market volatility and investor uncertainty.
This geopolitical instability has reinforced gold’s role as a reliable store of value in uncertain times. Additionally, weak U.S. economic data has led traders to price in the possibility of two interest rate cuts by the Federal Reserve later this year. Lower interest rates typically boost gold prices as they reduce the opportunity cost of holding non-yielding assets like bullion.
Spot gold rose 0.1% to $2,918.21 an ounce at 8:24 a.m. in Singapore, maintaining its steady position amid market turmoil. Investors are also watching closely for upcoming data, including the core personal consumption expenditures (PCE) price index, which is the Federal Reserve’s preferred inflation gauge. The report could provide further insights into the monetary policy outlook and influence gold’s direction.
In other precious metals, silver, platinum, and palladium remained largely unchanged, reflecting a broader sense of stability in the market. The Bloomberg Dollar Spot Index was flat, indicating that while the dollar’s movement was subdued, the ongoing uncertainty still supported demand for gold.
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