Gold prices rose in European trade on Tuesday, resuming gains and approaching record highs as haven demand spikes.
The precious metal is holding its ground above the historic $3200 barrier amid uncertainty about US President Donald Trump’s tariff plans.
The Price
Gold prices rose 0.7% today to $3232 an ounce, with a session-low at $3210.
On Monday, gold lost 0.85% on profit-taking, the first such loss in four sessions, moving away from a record high at $3245.
Trade Developments
US President Donald Trump exempted cell phones, computers, chips, and other electronics from his reciprocal tariffs, removing the pressure on tech companies.
Federal Reserve official Christopher Waller wanted that recession risks outweigh inflation risks, and if current average 25% tariffs continued, inflation could hit a peak of 5%.
Atlanta Fed President Raphael Bostic also warned from ongoing uncertainty due to tariffs and other policies that could push the economy into recession.
According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in May stood at 17%.
The odds of such a cut in June stood at a much bigger 73%.
SPDR
Gold holdings at the SPDR Gold Trust remained unchanged yesterday at 953.15 tons, the highest since September 20, 2022.
