Gold holds steady at $3,015 on Wednesday as investors square their positions while bracing for substantial tariffs from the US administration. Market participants are worried that new import duties could lead to higher inflation and slower economic growth.
In March, US consumer confidence fell to its lowest in four years. Households voiced concern about an impending recession and the inflationary impacts brought on by Trump’s tariffs.
The reciprocal duties expected on April 2 are likely to be narrower than previously threatened, thus contributing to market anxiety. As the situation unfolds, some Fed officials are scheduled to address their monetary stance later on Wednesday, which may provide further insights into the economic landscape.
Gold has long been seen as a safe-haven asset during periods of geopolitical uncertainty. Since the start of the year, its value has surged by 15%, culminating in an all-time high of $3,057.49 on March 20.
The US is set to release Personal Consumption Expenditures (PCE) data on Friday, which may provide insights into the Fed's future actions.