Gold prices remained modestly higher on Tuesday, trading near the $2,915 level amid safe-haven demand fueled by concerns over US President Donald Trump’s reciprocal tariffs potentially triggering a global trade war. Expectations of further Federal Reserve rate cuts this year also supported the non-yielding metal. However, rising US bond yields and a slight recovery in the US Dollar from its recent low could limit further upside momentum.
Trump reiterated threats of auto tariffs by April 2, adding to market jitters despite optimism surrounding delayed tariff implementation and US-Russia talks over the Ukraine conflict. Friday’s weak US Retail Sales and mixed inflation data suggest potential Fed rate cuts in late 2025. Fed officials provided mixed views, with some noting inflation’s persistence and calling for steady policy, while others supported rate cuts if inflation patterns improve.
The US Dollar snapped a three-day losing streak, tempering aggressive bullish bets on gold. Traders now await the Empire State Manufacturing Index and speeches from key FOMC members for further market cues.


