Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Gold prices edged lower in Asian trading on Wednesday, retreating slightly after hitting an all-time high in the previous session, as traders remained cautious ahead of U.S. President Donald Trump’s April 2 tariff announcements.
Gold Market Performance
- Spot gold (XAU/USD) fell 0.3% to $3,116.24 per ounce by 00:57 ET (04:57 GMT), after gaining 0.4% in early Asian trading.
- The metal hit a record high of $3,149.03 on Tuesday.
- Gold Futures (June contracts) were largely unchanged at $3,146.06 per ounce.
Gold has recorded four consecutive record highs, but volatility increased on Wednesday as investors awaited Trump’s tariff details.
Gold & Market Sentiment Amid Trump’s Tariffs
- Trump’s “Liberation Day” tariffs are set to be announced at 15:00 ET (19:00 GMT) on April 2 and will take immediate effect.
- These tariffs are expected to raise consumer prices and slow global economic growth, adding to market uncertainty.
- The uncertainty surrounding trade policies has fueled a strong rally in gold, traditionally a safe-haven asset.
The U.S. Dollar Index (DXY) ticked up 0.1% in Asian trading, reflecting cautious risk sentiment.
Other Precious Metals Gain
- Platinum Futures rose 0.3% to $1,009.65 per ounce.
- Silver Futures gained 0.7% to $34.523 per ounce.
Weaker U.S. Economic Data Complicates Fed Rate Outlook
- The JOLTS report showed job openings fell to 7.57 million in February, down from 7.76 million in January, signaling a gradual cooling labor market.
- The ISM Manufacturing PMI dropped to 49.0 in March, down from 50.3 in February, marking the sector’s first contraction in 2025.
With new trade tariffs potentially fueling inflation, the Federal Reserve faces a complex challenge:
- Rate cuts could support economic growth, but
- Tariffs could drive inflation higher, limiting the Fed’s ability to ease policy.
Investors now await the nonfarm payrolls report on Friday for further clarity on the labor market and Federal Reserve policy direction.
