Gold prices lifted to fresh records on Wednesday as investors assess the impact of United States trade policies and upcoming economic data.
By 3:40 pm AEDT (4:40 am GMT) spot gold prices were up by $13.72 or 0.5%, trading at record highs of US$2,855.99 per ounce.
The market continues to digest uncertainty surrounding President Donald Trump’s tariff measures, while fears of an escalating U.S.-China trade dispute provide support for the precious metal.
The rally in gold prices has been fuelled by persistent concerns over global economic growth, particularly as Trump’s administration temporarily pauses additional tariffs on Canada and Mexico while maintaining a tough stance on China.
Meanwhile, mixed U.S. economic data, including the recent ISM Manufacturing PMI and the Job Openings report, has reinforced expectations for two interest rate cuts by the Federal Reserve in 2025.
While some Fed policymakers remain hesitant about immediate cuts, lower rates could further support gold’s appeal as a non-yielding asset.
Investors are also closely watching the upcoming ADP private-sector employment report, expected to show an increase of 150,000 jobs in January, up from 122,000 in December.
Additionally, the ISM Services PMI and speeches from Fed officials Austan Goolsbee and Michelle Bowman may provide fresh market cues.
