Gold prices soared to an all-time high on Tuesday as investors sought refuge in the precious metal following U.S. President Donald Trump’s announcement of steep new tariffs on steel and aluminum imports. The move has intensified fears of a global trade war and rising inflationary pressures.
Market Performance
- Spot gold climbed 0.4% to $2,920 per ounce after briefly touching a record high of $2,942.66 earlier in the session.
- U.S. gold futures edged up 0.3% to $2,944.40.
Key Drivers Behind the Rally
- Trump’s decision to impose a flat 25% tariff on steel and aluminum imports—without exemptions—has triggered fresh concerns about trade disruptions and economic uncertainty.
- The safe-haven appeal of gold has strengthened, with the metal marking its eighth record high this year, as investors hedge against economic instability and inflation risks.
- The price surge has put the coveted $3,000 milestone within reach, with bullish sentiment remaining strong.
Inflation & Federal Reserve Watch
- The tariff move could further fuel U.S. inflation, with investors closely monitoring upcoming economic data.
- The U.S. Consumer Price Index (CPI) report is set for release on Wednesday, followed by the Producer Price Index (PPI) on Thursday.
- Federal Reserve Chair Jerome Powell is scheduled to testify before Congress on Tuesday and Wednesday, potentially offering insights into future monetary policy.
Geopolitical Tensions Add to Uncertainty
Beyond trade concerns, geopolitical tensions remain in focus. On Monday, Hamas announced a halt to the release of Israeli hostages, citing alleged ceasefire violations by Israel. The development raises the possibility of renewed conflict in Gaza, further fueling risk-off sentiment in global markets.
With trade and geopolitical risks mounting, gold continues to shine as the go-to safe-haven asset, with investors bracing for further market volatility.
news source by:- MSN
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