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Gold endured a volatile few hours’ trading — rallying to a record, then paring gains — after President Donald Trump imposed tariffs on US steel and aluminium imports, adding to uncertainty in global markets.
Bullion set a fresh peak above US$2 942 an ounce, before retracing much of its advance.
Trump said on Monday that the latest round of levies, which go into effect in March, would bolster domestic production and bring more jobs to the US.
He also warned the tariffs “may go higher.”
The precious metal has surged about 11 percent this year, setting successive records, as Trump’s disruptive moves on trade and geopolitics reinforce its role as a store of value in uncertain times.
Traders are also trying to get a read on the potential implications for the US economy and monetary policy should the White House’s policies reignite inflation and subdue growth.
Investors will be focused on Federal Reserve Chair Jerome Powell’s testimony before Congress on Tuesday and Wednesday for clues about monetary policy.
Short-term US inflation expectations have risen above longer-term ones to the widest since 2023. That may support the case for a slower pace of easing, a scenario that could be bearish for bullion as it pays no interest.
Gold’s ascent has been accompanied by inflows into bullion-backed exchange-traded funds. Global holdings have risen for six of the past seven weeks, hitting the highest since November, according to a Bloomberg tally.
Banks have forecast that a test of US$3 000 an ounce is in the offing.
Among them, Citigroup said last week it expected gold to hit that level within three months, with geopolitical tensions and trade wars boosting demand. — Bloomberg.
Online Reporter