Gold prices made modest gains during Asian trade on Wednesday, hovering just below record highs as investors turned to the safe-haven asset ahead of United States President Donald Trump’s widely anticipated tariff announcement.
By 3:30 pm AEDT (4:30 am GMT), spot gold had risen by US$9.80, or 0.3%, to US$3,123.74 per ounce.
Gold traders are also monitoring upcoming U.S. employment data, with the Automatic Data Processing (ADP) report for March set to provide further insight into the labour market. Markets expect U.S. private sector payrolls to rise by 105,000, following a modest increase of 77,000 in February.
A weaker-than-expected reading could reinforce expectations of Federal Reserve interest rate cuts, which would support gold prices.
However, any immediate market reaction to the jobs data may be short-lived as investors brace for Trump’s tariff announcement.
ANZ analysts reaffirmed their positive outlook for gold, citing ongoing geopolitical and economic uncertainties:
“We retain our positive view of gold, having recently adjusted our 3-month ahead forecast to $3,100 per ounce and 6-month forecast to $3,200 per ounce. Geopolitical disruptions, easing monetary policy, trade uncertainty, and risks to global economic growth remain potent tailwinds for gold.”
