Gold prices remained resilient on Wednesday, holding steady after surging to an all-time high in the previous session, as investors flocked to the precious metal amidst rising economic and geopolitical uncertainty. Spot gold climbed 0.6% to $3,128.41 per ounce by 0827 GMT, while U.S. gold futures rose 0.4% to $3,159.10.
As the global landscape becomes increasingly turbulent, gold continues to shine as a preferred safe-haven asset. Its value has surged by more than $400 since President Donald Trump took office in January, reaching a record peak of $3,148.88 on Tuesday.
The price action comes as investors brace for U.S. President Trump’s highly anticipated tariff announcement on April 2, dubbed “Liberation Day.” At a White House event scheduled for 2000 GMT, Trump is expected to unveil aggressive new tariffs on several countries, a move that could disrupt global trade, slow economic growth, and intensify existing tensions, according to experts.
“Gold is currently benefiting from both geopolitical and macroeconomic pressures. If Trump’s tariffs are as severe as anticipated, we could see another rally in gold prices,” said Soni Kumari, Commodity Strategist at ANZ.
Further weighing on market sentiment, a recent Institute for Supply Management survey revealed troubling signs for U.S. business conditions, showing that U.S. manufacturing contracted in March after two consecutive months of growth.
UBS analysts have set a base-case forecast for gold at $3,200 per ounce for 2025, but warn that in the event of a sharp economic slowdown, gold prices could soar to $3,500.
Market participants are also eyeing key employment data, with the ADP report due later today and the non-farm payrolls report on Friday. Any indication of a shift in U.S. Federal Reserve policy could influence gold’s trajectory in the coming months.
“Gold is poised to outshine other metals unless the U.S. Fed surprises with an interest rate hike,” analysts at BMI added.
Elsewhere in the metals market, spot silver gained 0.5%, reaching $33.90 per ounce, while platinum dipped 0.2% to $977.97, and palladium inched up 0.2% to $985.70.
