Gold prices went up slightly on Tuesday as people remained worried about U.S. President Donald Trump’s plans for tariffs and how they could affect the global economy.
Here are the key points:
Current Gold Price: The price of spot gold increased by 0.1%, reaching $3,211.49 per ounce. It had a record high of $3,245.42 in the previous session.
Futures Prices: U.S. gold futures also rose by 0.1% to $3,227.90.
Tariff News: The Trump administration is looking into imposing tariffs on pharmaceuticals (medicines) and semiconductors (computer chips) because they believe relying on foreign products could be a national security risk. Trump plans to announce the tariff rates for semiconductors within a week, which is keeping investors anxious.
Gold’s Role: Gold is often seen as a safe investment during uncertain times, and it does well when interest rates are low.
Inflation Expectations: Many Americans expect rising prices in the near future, with inflation expectations reaching the highest level since Fall 2023.
Interest Rates: Traders predict that interest rates may decrease by about 86 basis points by the end of 2025.
Investment in Gold: Investment in gold exchange-traded funds in China has been higher this month compared to the whole first quarter of the year and has outpaced inflows into U.S. funds, according to the World Gold Council.
Other Precious Metals: The prices for other metals fell slightly as well. Spot silver decreased by 0.3% to $32.26 per ounce, platinum dropped by 0.3% to $948.60, and palladium eased by 0.6% to $950.25.
Upcoming Data Releases:
– 0600 GMT: UK unemployment changes
– 0645 GMT: France’s consumer price index
– 0900 GMT: Germany’s economic sentiment and current conditions
– 1230 GMT: U.S. import price data
Leave a Reply