In response to heightened investor anxiety, there was a notable increase in demand for gold on Wednesday, resulting in a rise in its prices. This was in expectation of announcements concerning reciprocal tariffs from the United States, which could exacerbate the current global trade conflict. In the last trading session, spot gold achieved a record peak of $3,148.88 per ounce. As of 00:26 GMT, it is currently valued at $3,120.64 per ounce, reflecting a 0.3% rise. Gold futures in the United States reached $3,151.80, reflecting an increase of 0.2%.

The details regarding the tariffs that the United States intends to implement later today remain shrouded in uncertainty, a development that President Trump has characterized as “Liberation Day.” Consequently, market expectations are elevated. The White House has indicated that new duties will be implemented; however, it has yet to provide detailed information concerning the magnitude or scope of these penalties.

Moreover, market participants are bracing for the implementation of tariffs on automobiles, set to take effect on April 3. The tariffs instituted by Trump may lead to heightened inflationary pressures, which could in turn decelerate economic growth and exacerbate trade tensions. Gold typically performs well in a low-interest-rate environment, as it is viewed as a safeguard against prevailing economic and political uncertainties.

A growing apprehension within the Federal Reserve is the potential decline in employment, coupled with the threat of tariff-induced inflation, which may limit their capacity to respond effectively. The recent data on employment in the United States, coupled with a bleak manufacturing report, underscores the growing concern in the economy.

The spot price of silver experienced a decline of 0.3%, settling at $33.64 per ounce. In contrast, gold saw an uptick of 0.6%, reaching $985.30 per ounce, while palladium held steady at $983.50 per ounce.