Trump’s Tariff Talk Boosts Gold Prices as Investors Seek Safety

WASHINGTON: President Donald Trump’s tariff strategies enhanced attention in the safe-haven metal, which is why gold prices increased to a two-week high on Tuesday as alarms over the US president, while nominees await the future Federal Reserve policy meeting.

At $3,357.63 an ounce, Spot gold was up 0.7 per cent, as of 0410 GMT, it is the highest level hit since April 22, previously in the session.

To begin this week, Gold prices have a strong approach. With investors returning to the safe-haven asset to hedge against portfolio instability among transformed tariff concerns from US President Donald Trump,” said IG market planner Yeap Jun Rong.

A 100 per cent tariff on movies produced foreign, Trump announced this news on Sunday, how such a duty would work they issues the few detail about it.

On Monday, within the next two weeks, he said he also proposes to announce pharmaceutical tariffs.

On the calendar this week is the Fed’s interest rate decision and Fed Chair Jerome Powell’s comments due on Wednesday to get signs on the US central bank’s rate route. The Fed has held its policy rate in the 4.25 per cent to 4.50 per cent range since last December.

“Any dovish signals could provide further support for gold, strengthening its wider upward momentum,” Rong said.

The Fed will probably leave interest rates unchanged, according to a Reuters report, which also stated that the meeting may be the last where the result is so clear and dry, with Trump’s tariffs casting a shadow of insecurity over the economic viewpoint.

Before cutting, Fed officials will want to see signs from the labor market and other hard data. We think this will take a couple of months and therefore expect three 25bp cuts in July, September, and October,” Goldman Sachs said in a note.

Non-yielding gold, a safeguard against political and financial chaos, succeeds in a low-interest-rate environment.

Among other metals, spot silver rose 1.7 per cent to $33.05 an ounce, platinum scaled 1.5 per cent to $973.20, and palladium advanced 1 per cent to $950.66.