Gold prices pushed higher during Tuesday's Asian session, challenging record highs once again as investor caution around United States trade policy and expectations for Federal Reserve rate cuts continued to support demand.
By 4 pm AEST (6 am GMT) spot gold had added $12.95 or 0.4% to US$3,223.90 per ounce.
The U.S. dollar regained some footing overnight after hitting three-year lows, helped by a mild risk reset in global markets.
On Monday, Trump said he was considering easing the 25% tariffs on foreign auto and auto parts imports from Mexico, Canada, and other countries, stating that automakers “need a little bit of time because they're going to make 'em here”.
The comments came on the heels of the administration’s announcement that certain technology imports - including smartphones, laptops, and disc drives - would be exempt from the newly announced “reciprocal” tariffs on China.
However, Trump clarified that these products would still be subject to the existing 20% tariffs rather than the proposed 145% rate, adding that he “will announce the tariff rate for semiconductors over the next week”.
Meanwhile, physical gold-backed exchange-traded funds (ETFs) in China have seen a marked uptick in inflows so far in April, further buoying prices, according to the World Gold Council.
Looking ahead, gold’s trajectory will likely hinge on further trade developments and commentary from Fed officials, as this week’s U.S. economic calendar remains relatively quiet.
Markets are also bracing for China’s first-quarter GDP report due Wednesday, which could further influence global sentiment and the direction of gold prices.
