By Rahul Paswan and Sarah Qureshi (Reuters) – Gold prices extended their record run on Tuesday, hitting a record high buoyed by safe-haven demand as investors braced for U.S. President Donald Trump’s planned announcement on reciprocal tariffs. Spot gold was up 0.3% at $3,133.01 per ounce at 1147 GMT, after hitting an all-time high of […]
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Gold’s record run persists as US tariff worries bolster safe-haven demand
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By Rahul Paswan and Sarah Qureshi
(Reuters) – Gold prices extended their record run on Tuesday, hitting a record high buoyed by safe-haven demand as investors braced for U.S. President Donald Trump’s planned announcement on reciprocal tariffs.
Spot gold was up 0.3% at $3,133.01 per ounce at 1147 GMT, after hitting an all-time high of $3,148.88 earlier in the day.
U.S. gold futures were 0.4% higher at $3,161.60.
“Trump’s tariff comments and his increasingly volatile stance on Russia’s war against Ukraine are proving the perfect chaos for new record gold prices,” surpassing even the COVID-19 pandemic five years ago, said Adrian Ash, head of research at online marketplace BullionVault.
Trump said on Sunday his reciprocal tariffs to be announced on Wednesday would include all countries, not just a smaller group of 10 to 15 countries with the biggest trade imbalances.
On Monday, Goldman Sachs raised the probability of a U.S. recession to 35% from 20% and said it expected more rate cuts by the Federal Reserve. Non-yielding bullion thrives in a low-interest rate environment.
Gold’s recent bull run has benefited from two drivers – growing demand from central banks beginning in spring 2022, and the return of Western safe-haven seekers this year – said Carsten Menke, analyst at Julius Baer.
Geopolitical instability in the Middle East and Europe, and increased flows into gold-backed exchange-traded funds have also supported bullion’s rally.
Gold closed out its strongest quarter since 1986 on Monday, and climbed over $3,100/ounce, marking one of the most significant upswings in the precious metal’s history.
On a technical basis, gold’s Relative Strength Index (RSI) stands above 70, indicating the metal is overbought.
“I’m looking for a long overdue correction before an eventual push towards our target at $3,300… a correction will only get a bit more serious if we break below the $2,955 area,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Investors now await U.S. job openings data later on Tuesday and the U.S. non-farm payrolls report on Friday.
Silver fell 0.7% to $33.85 an ounce and platinum eased 0.8% to $984.51. Palladium steadied at $982.36.
(Reporting by Rahul Paswan and Sarah Qureshi in Bengaluru; Editing by Mark Potter and Varun H K)