Gold prices stabilised on Wednesday after retreating from record highs in the previous session, as concerns over United States President Donald Trump's tariff policies bolstered demand for safe-haven assets.
By 4:00 pm AEDT (5:00 am GMT) spot gold edged remained flat at US$2,915.36 per ounce, following a more than 2% drop on Tuesday.
ANZ analysts noted: "The sell-off was sparked by the latest data showing U.S. consumer confidence fell this month by the most since August 2021. This may ultimately see support return for gold, with weak economic data likely to spur the Fed to cut rates."
Meanwhile, Trump’s latest trade actions heightened uncertainty in financial markets after he ordered an investigation into potential new tariffs on copper imports. The probe aims to strengthen U.S. domestic production of a key metal used in electric vehicles, military hardware, and infrastructure.
Despite recent profit-taking, gold remains up approximately 11% this year, with fears of a global trade war underpinning demand. The metal has repeatedly reached record highs as investors seek protection against economic instability.
Market participants are now focused on the U.S. Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation gauge, due for release on Friday. The data could provide further insights into the central bank’s monetary policy stance.
Meanwhile, optimism surrounding U.S.-China tariff discussions has weighed on gold’s upside momentum. However, concerns over broader trade tensions and potential new duties continue to drive safe-haven interest.
