Gold pauses for breath after record run on safe-haven demand
Shafaq News/ Goldprices eased on Tuesday on profit-taking but remained near record highs asinvestors turned to the safe-haven asset ahead of President Donald Trump'splanned announcement of sweeping tariffs on countries that have a tradeimbalance with the US
Spot gold was down 0.3% at $3,113.43 per ounce as of 1:46p.m. ET (1746 GMT), after hitting an all-time high of $3,148.88 earlier in theday.
US gold futures settled 0.1% lower at $3,146.
It's "not surprising to see a little bit of profittaking, particularly given that the market had become rather overbought ... Idon't really see much of a change in the fundamentals ... it's a perfect stormfor gold," said Peter Grant, vice president and senior metals strategistat Zaner Metals.
Markets and consumers are waiting for details of Trump'splanned tariffs, set to be announced on Wednesday. White House aides havedrafted plans for tariffs of around 20% on most U.S. imports, the WashingtonPostreportedTuesday.
Gold, traditionally seen as a hedge against geopolitical andeconomic uncertainties, closed out its strongest quarter since 1986 on Monday,and climbed over $3,100/ounce, marking one of the most significant upswings inthe preciousmetal's history.
GoldmanSachs raised the probability of a U.S. recession to 35% from 20% onMonday, and said it expected more rate cuts by the Federal Reserve.Non-yielding bullion thrives in a low-interest-rate environment.
"We continue to see the gold prices movinghigher," due in part to increasing gold holdings by physically backed ETFsand robust central bank purchases, said Ryan McIntyre, senior portfolio managerat Sprott Asset Management.
On a technical basis, gold's Relative Strength Index (RSI)stands above 70, indicating the metal is overbought.
Job openings fell to 7.568 million by the end of February,the Labor Department's Bureau of Labor Statistics said in a Tuesday report,compared with economists' expectation of 7.616 million. Investors are alsoawaiting Friday's non-farm payrolls report for cues on the Fed's rate cuttrajectory.
Silver fell 1.4% to $33.6 an ounce, platinum was down 0.8%at $984.64. Palladium fell 0.2% to $981.0.
