Gold Prices Hold Above $3,000 Amid Tariff Uncertainty and U.S. Economic Data Focus

Gold prices edged lower in Asian trading on Wednesday, as traders took profits while awaiting further clarity on U.S. President Donald Trump’s trade tariffs and key U.S. economic data.

Gold Market Performance:

• Spot Gold: Down 0.1% at $3,015.73/oz
• Gold Futures (May Expiry): Down 0.2% at $3,048.25/oz

Despite the dip, gold remained above the $3,000 mark, close to its record highs from early March, as demand for safe-haven assets stayed resilient amid ongoing trade uncertainties.

Key Market Drivers:

1. Tariff Uncertainty and Trump’s Trade Policy

• Trump hinted at potential flexibility in his tariff plans during a Tuesday interview with Newsmax but provided no concrete details.
• The April 2 tariff deadline remains a major market focus, with Trump referring to the date as “liberation day” for U.S. trade.
• Reports suggest tariffs on industrial metals, including copper, could be announced soon, adding to volatility in the metals market.

2. Copper and Industrial Metals Decline

• Copper prices fell sharply after reaching a nine-month high, amid concerns over potential U.S. tariffs on the metal.
• Broader metals also retreated, with platinum futures down 0.5% to $970.00/oz and silver futures down 0.2% to $34.123/oz.

3. U.S. Economic Data in Focus

• Markets are awaiting key U.S. economic readings for further signals on growth and inflation:
  • Durable Goods Orders (Wednesday)
  • Revised Q4 GDP (Thursday)
  • PCE Price Index (Friday) – the Federal Reserve’s preferred inflation gauge
• Several Federal Reserve officials are also set to speak this week, which could provide further clues on interest rate policy.

Outlook:

• Gold remains supported by safe-haven demand, but short-term movements will depend on Trump’s tariff announcements and U.S. economic data.
• If U.S. inflation data remains strong, it could increase pressure on the Fed to keep rates higher for longer, potentially weighing on gold prices.
• Conversely, any weakness in economic growth data could boost gold as a hedge against uncertainty.