Gold prices rose on Tuesday, driven by a weaker dollar and heightened safe-haven demand amid escalating trade conflicts following U.S. President Donald Trump's imposition of new tariffs, as per a report.
Spot gold was up 0.9 per cent at $2,918.90 an ounce as of 09:12 a.m. ET (1154 GMT). Bullion has gained more than 11 per cent so far this year and hit a record high of $2,956.15 on February 24, Reuters reported.
U.S. gold futures were up 1 per cent at $2,929.20.
Trump's new 25 per cent tariffs on imports from Mexico and Canada took effect at 0501 GMT. He also doubled duties on Chinese goods to 20 per cent. China hit back immediately with additional 10 per cent-15 per cent tariffs on certain U.S. imports from March 10 and a series of new export restrictions for designated U.S. entities.
The U.S. dollar index fell 0.6 per cent, hitting its lowest level since December and making dollar-priced gold less expensive for buyers holding other currencies.
Investors' focus turns to the ADP employment report due on Wednesday and the U.S. nonfarm payrolls report on Friday for clues on the Federal Reserve's interest-rate trajectory.
Considering potential economic instability and a weakening job market, there may be a possibility of an earlier-than-expected rate cut by the Fed, Meger said.
Following three rate cuts last year, the Fed has kept rates steady. Market expectations point towards a resumption of cuts in June, with a potential further reduction in short-term borrowing costs anticipated in September.
JPMorgan said it expects gold to be close to $3,000 an ounce by the fourth quarter of 2025.
Spot silver added 0.7 per cent to $31.89 an ounce, platinum firmed 0.9% to $961.45 and palladium gained 0.3 per cent to $940.92.
Q1. What are prices of Silver?
A1. Spot silver added 0.7 per cent to $31.89 an ounce, platinum firmed 0.9 per cent to $961.45 and palladium gained 0.3 per cent to $940.92.
Q2. What is current gold rate?
A2. U.S. gold futures were up 1 per cent at $2,929.20.
Spot gold was up 0.9 per cent at $2,918.90 an ounce as of 09:12 a.m. ET (1154 GMT). Bullion has gained more than 11 per cent so far this year and hit a record high of $2,956.15 on February 24, Reuters reported.
U.S. gold futures were up 1 per cent at $2,929.20.
Trump's new 25 per cent tariffs on imports from Mexico and Canada took effect at 0501 GMT. He also doubled duties on Chinese goods to 20 per cent. China hit back immediately with additional 10 per cent-15 per cent tariffs on certain U.S. imports from March 10 and a series of new export restrictions for designated U.S. entities.
The U.S. dollar index fell 0.6 per cent, hitting its lowest level since December and making dollar-priced gold less expensive for buyers holding other currencies.
Investors' focus turns to the ADP employment report due on Wednesday and the U.S. nonfarm payrolls report on Friday for clues on the Federal Reserve's interest-rate trajectory.
Considering potential economic instability and a weakening job market, there may be a possibility of an earlier-than-expected rate cut by the Fed, Meger said.
Following three rate cuts last year, the Fed has kept rates steady. Market expectations point towards a resumption of cuts in June, with a potential further reduction in short-term borrowing costs anticipated in September.
JPMorgan said it expects gold to be close to $3,000 an ounce by the fourth quarter of 2025.
Spot silver added 0.7 per cent to $31.89 an ounce, platinum firmed 0.9% to $961.45 and palladium gained 0.3 per cent to $940.92.
FAQs
Q1. What are prices of Silver?
A1. Spot silver added 0.7 per cent to $31.89 an ounce, platinum firmed 0.9 per cent to $961.45 and palladium gained 0.3 per cent to $940.92.
Q2. What is current gold rate?
A2. U.S. gold futures were up 1 per cent at $2,929.20.
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