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Gold prices soared to fresh record highs in Asian trade on Tuesday, driven by escalating trade war fears and geopolitical tensions under U.S. President Donald Trump.
- Spot gold reached a record high of $2,942.69/oz.
- Gold futures peaked at $2,968.39/oz before slightly retreating.
Key Market Drivers:
- U.S. Trade Tariffs Spark Economic Uncertainty
- Trump signed 25% tariffs on steel and aluminum imports, effective March 12.
- More reciprocal tariffs expected this week, heightening trade war fears.
- Tariffs on Chinese goods already in place (10%), prompting retaliation from Beijing.
- Market fears that escalating tariffs will disrupt global trade and fuel inflation.
- Geopolitical Tensions Fuel Safe-Haven Demand
- Trump’s ultimatum to Hamas: Return Israeli hostages by Saturday or face severe consequences.
- Potential cancellation of Israel-Hamas ceasefire raises risks of broader conflict.
- Middle Eastern tensions push investors toward gold as a hedge.
Other Metals & Market Reactions
- Platinum: Down to $1,035.50/oz
- Silver: Down 0.5% to $32.343/oz
- Copper: Down 0.6% to $9,411.25/ton (London Metal Exchange)
- March Copper Futures: Down 0.3% to $4.6788/lb
Outlook:
- Gold remains strong as investors hedge against inflation, trade uncertainty, and geopolitical risks.
- Markets await U.S. inflation data on Wednesday, which will shape expectations for Federal Reserve policy.
- Further volatility expected if Trump announces additional tariffs or tensions escalate in the Middle East.
