Gold prices held steady above the US$3,000 mark during Asian trade on Wednesday, consolidating recent gains as investors weighed the impact of renewed United States tariff threats on the global economy.
By 4:05 pm AEDT (5:05 am GMT) spot gold was down $5.71 or 0.2% to US$3,013.70 per ounce.
Market focus returned to the potential economic fallout from U.S. tariffs, which could drive gold prices higher.
According to the Toronto Star, U.S. President Donald Trump may introduce three levels of escalating tariffs, with Canada likely facing the lowest tier in the 2 April rollout.
Meanwhile, Bloomberg News reported that the U.S. administration plans to implement copper import tariffs within weeks.
The renewed tensions have raised concerns about U.S. economic stability, keeping the U.S. dollar’s upside limited and reinforcing demand for gold.
Gold prices remain well-positioned for further gains as markets brace for the 2 April tariff announcement. However, a stronger-than-expected U.S. Durable Goods Orders report could bolster expectations for an interest rate cut by the Federal Reserve later this year, potentially limiting gold’s rally.
Geopolitical developments also remain in focus, as the U.S. announced agreements with Ukraine and Russia on Tuesday to pause attacks at sea and against energy targets, with Washington agreeing to push for some sanctions relief on Moscow.
