Gold rises as safe-haven demand grows ahead of new US tariffs

Gold prices advanced 0.7% on Wednesday, extending gains after reaching an all-time high of $3,148.94 in the previous session. Demand for the precious metal remains strong as market participants seek hedges against geopolitical risks and potential new US tariffs.

Philip Newman, Managing Director at Metals Focus, identifies trade tensions as the primary driver of gold demand growth, noting no visible de-escalation. He further highlights supportive conditions including slowing US economic growth, persistent inflation risks, and potential Federal Reserve (Fed) rate cuts—all reinforcing gold's upward momentum.

President Donald Trump's announcement of new tariffs, framed as part of the 'Liberation Day' measures taking effect April 2, has heightened market uncertainty.

Markets await today's ADP employment report and Friday's nonfarm payrolls data, both of which could reshape Fed policy expectations, according to Reuters.