Gold prices dipped in Asian trade on Tuesday but remained close to all-time highs, as persistent safe-haven demand offset profit-taking. The metal had surged overnight, nearing a fresh peak, as investors braced for escalating U.S.-China trade tensions and potential new tariffs on Canada and Mexico.
Key Drivers Behind Gold’s Movement
? Gold Price Update:
Spot gold: Down 0.5% to $2,947.73 per ounce.
Gold futures (April): Down 0.3% to $2,952.99 per ounce.
Last week’s record high: $2,956.37 per ounce.
? Safe-Haven Demand Rises:
U.S. President Donald Trump reaffirmed plans to impose 25% tariffs on Canada and Mexico by March 4, heightening global trade war concerns.
Over the weekend, Trump signed an executive order expanding trade and investment restrictions on China, adding to uncertainty in markets.
? Geopolitical & Economic Factors Supporting Gold:
China Retaliation Risks:
Beijing has already responded with new tariffs and export controls in reaction to earlier U.S. sanctions.
Reports indicate the U.S. is weighing tighter controls on semiconductor exports, which could further escalate tensions.
Inflation & Interest Rate Outlook:
The Federal Reserve’s 2025 rate-cut trajectory remains uncertain, but sustained inflation fears are keeping gold demand strong.
Investor Takeaways: Is Gold Set for New Highs?
? Short-term resistance: Gold is consolidating just below its record high as traders await further tariff developments.? Medium-term outlook: Rising trade war tensions and a weaker dollar could push gold beyond the $3,000 per ounce mark.? Key risk events: Watch for March 4 tariff deadlines, U.S.-China trade updates, and Fed policy signals.
For real-time gold price movements and commodity data, check out the Commodity API.
? Bottom Line: While gold saw mild profit-taking, its strong safe-haven appeal amid rising trade tensions and global economic uncertainty suggests further upside potential.
