Gold prices slightly retreated on Wednesday, with spot gold priced at $3,016.71 per ounce, down 0.1%. Meanwhile, U.S. gold futures closed down 0.1% at $3,022.50. The dollar index increased by 0.4%, and the yield on 10-year U.S. Treasury bonds rose. Nonetheless, due to concerns over new tariffs by the Trump administration, gold prices have managed to stay above the $3,000 per ounce level.
Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals, stated: "Under the continued influence of tariff uncertainties and geopolitical risks, gold remains supported by risk aversion sentiment. A new historical high will help achieve my next upward target of $3,150."
Investors are concerned that Trump's new tariff policies might fuel inflation and hinder economic growth, prompting them to seek refuge in safe-haven assets like gold. Gold has long been viewed as an effective tool against uncertainty and inflation, having risen more than 15% this year and reaching a historic high of $3,057.21 on March 20.
The market is currently focusing on the U.S. Personal Consumption Expenditures (PCE) data to be released on Friday, which is expected to provide more insights into the Federal Reserve's future rate-cut path.
In addition, spot silver fell 0.3% to $33.63 per ounce; platinum declined 0.1% to $975.17; and palladium rose 1% to $965.98.
