Early yesterday morning, gold rallied and hit a fresh record high, coming within a dollar of $3,150 per ounce. It subsequently pulled back, as profit-takers came in to reduce their exposure, sending prices down to retest $3,100.
But it was firmer again this morning, as buyers returned, with many looking to diversify their exposure to risky assets. This comes ahead of President Trump’s key speech tonight in which he will address his administration’s imposition of reciprocal tariffs on US trading partners.
Source: TN Trader
There is so little clarity over the size and scope of planned tariffs, let alone which countries will be affected. This has coated financial markets with a thick blanket of uncertainty which is making it difficult for investors and traders alike to know how to adjust to the new environment.
For now, gold is reaping the benefits of this lack of clarity. But does that mean that gold prices will suddenly go into retreat once markets know more? Or could it be that the tariffs are seen as so harmful to global trade that investors pour even more money into the gold trade? Worst of all, perhaps investors will remain in the dark even after tonight’s announcement.
