On Wednesday, the price of spot gold rose slightly, rebounding to $2925.05 per ounce after recovering from a one-week low reached the previous trading day. President Trump's recent tariff proposals have sparked market uncertainty about global trade, dampening risk appetite and boosting demand for gold as a safe haven asset.
As of 9:24 AM Beijing time, the spot gold price increased by 0.3%. The main driver behind this rebound in gold prices is Trump's renewed pressure on trade measures on Tuesday, ordering a "232 investigation" into copper imports and planning to impose new tariffs to revitalize the U.S. copper industry, especially in key sectors like electric vehicles, military equipment, and power grids. This move intensified concerns about global trade tensions, further driving the increase in gold prices.
Moreover, the uncertainty brought by tariff policies has started to impact U.S. economic data. Reports show that U.S. consumer confidence plummeted in February at the fastest pace in three and a half years, while the 12-month inflation expectations have notably risen. Fed official Tom Barkin stated that making significant monetary policy adjustments is becoming more challenging amid the current uncertain economic environment. Inflation pressures might compel the Fed to maintain high interest rates, reducing the appeal of gold as a non-yielding asset.
The market tensions caused by Trump's tariff policies have boosted demand for gold as a safe-haven asset, with gold prices hitting a record high of $2956.15 on Monday. This surge in gold prices reflects investor concerns over escalating trade wars and the global economic outlook.
Additionally, data released by the Hong Kong SAR government shows that total gold exports to mainland China in January were 13.816 tons, significantly lower than the previous month's 25.007 tons, indicating fluctuations in market demand for gold.
Against this backdrop, the gold market will continue to be influenced by U.S. trade policies and global economic uncertainties. Investors need to pay attention to economic data and Fed policy directions in the coming months.
