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Gold prices continue to rise as uncertainty about tariffs continues to affect markets

Gold prices continue to rise as uncertainty about tariffs continues to affect markets

The gold price edged up on Tuesday, amid the persistent uncertainty about impending reciprocal U.S. Tariffs and their impact to the global economy.

As of 0928 GMT, spot gold was up 0.3%, at $3,021.24 per ounce. U.S. Gold Futures rose 0.3% to $3 025.

On March 20, spot gold reached a new record of $3,057.21.

Donald Trump, the U.S. president, said that not all his levies threatened would be implemented on April 2, and some countries could get a break. Markets expect Trump's tariffs will hinder economic growth.

Gold prices continue to be supported by expectations that the Federal Reserve would cut rates soon and fears of a slower economy. This is according to Ricardo Evangelista senior analyst at brokerage ActivTrades.

I expect gold to stay above the psychologically important level of $3,000 and traders will likely view any dips in price as opportunities to buy. The upside could be limited by a renewed risk appetite that creates significant resistance around $3,056 highs reached last week. Investors now await U.S. The Fed's preferred measure of inflation, Personal Consumption Spending, is due to be released on Friday. This data could provide hints about future policy decisions. The U.S. central bank held its benchmark interest rate steady last week but indicated that it could cut rates by a quarter-percentage-point later this year.

Bullion is often seen as a hedge to geopolitical or economic uncertainty and thrives when interest rates are low, as it pays no interest. On the geopolitical side, the U.S. and Ukrainian delegations will meet in Saudi Arabia on Tuesday following the Russia-U.S. meeting there the day before on a limited Black Sea truce proposal that Washington hopes to open the door for broader negotiations.

Silver spot gained 0.8%, to $33.24 per ounce. Platinum rose 0.6% to $978.60. Palladium increased 0.3% to $953.75. (Reporting by Rahul Paswan in Bengaluru; Editing by Sonia Cheema)

(source: Reuters)