Gold prices surged to fresh record highs above US$3,130 in early Tuesday trading, extending their rally as traders awaited Wednesday’s United States tariff announcement.
By 3:45 pm AEDT (4:45 am GMT) spot gold prices were up by $21.08 or 0.7% to US$3,144.86 per ounce.
Gold’s traditional safe-haven appeal remained strong as market jitters resurfaced over U.S. President Donald Trump’s impending tariff plan.
Late Monday, Trump dismissed proposals for a more selective tariff approach, instead confirming that his “reciprocal tariffs” would apply broadly to all countries.
Analysts at ANZ said in a note to clients: "Investors are becoming increasingly concerned about the impact of Trump’s reciprocal tariffs on the global economy after Europe and Canada threatened to join forces to combat the U.S. tariffs, a scenario U.S. President Donald Trump warned would result in harsher penalties.
"Rising demand for physical gold is adding to the upward pressure on prices."
Uncertainty surrounding the tariffs triggered renewed selling pressure on the U.S. dollar, as investors feared economic repercussions.
Expectations of a potential stagflation scenario in the U.S. have also intensified speculation that the Federal Reserve may be forced into aggressive interest rate cuts, further weighing on the dollar and Treasury yields while bolstering gold’s appeal.
