Gold prices extended gains on Tuesday, as uncertainty over US President Donald Trump's plans for tariffs weighed on investor sentiment and boosted the yellow metal's appeal as a safe haven amid concerns over a potential global trade war.
Gold prices in transactions
Spot gold rose 0.2% to $2,903.56 per ounce by 03:01 GMT, while US gold futures rose 0.6% to $2,916.80.
"We seem to be seeing significant buying by central banks, and we are also facing the possibility of a supply shortage in Europe, as investors in the US rush to buy gold in anticipation of potential tariffs," said Kyle Rodda, a financial markets analyst at Capital.com, according to Reuters.
Gold prices after tariffs
Since taking office, Trump has imposed a 10% tariff on Chinese imports, announced a 25% tariff on goods imported from Mexico, and on non-energy imports from Canada, before postponing its implementation. He has also set a date for imposing a 25% tariff on steel and aluminum imports, and plans to impose retaliatory tariffs on all countries that impose tariffs on US imports.
Statements on gold prices
Meanwhile, Goldman Sachs raised its gold price forecast to $3,100 per ounce by the end of 2025, compared to its previous estimate of $2,890, due to higher structural demand from central banks.
As for other precious metals, the price of silver in spot transactions decreased by 1.3% to reach $32.37 per ounce, while platinum rose by 0.5% to $980.29, and palladium rose by 1.4% to reach $976.35.
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