Gold prices remained steady near record highs on Tuesday, fuelled by safe-haven demand after China announced retaliatory tariffs on U.S. goods, while traders also kept an eye on crucial jobs data set to be released this week.
Spot gold held its ground at $2,811.59 per ounce, as of 0813 GMT, after hitting a record high of $2,830.49 on Monday.
A line chart titled “Spot gold price in USD per oz” that tracks the metric over time.
U.S. gold futures fell 0.6% to $2,840.90 on Tuesday.
China slapped tariffs on some U.S. imports in a swift response to new U.S. duties on Chinese goods, renewing a trade war between the world’s top two economies even as U.S. President Donald Trump offered reprieves to Mexico and Canada.
“It’s quite likely that there will be a broader and wider range of tariffs applied or discussed, which will create more volatility and gold will probably benefit despite the strong dollar environment,” said Nicholas Frappell, global head of institutional markets at ABC Refinery.
Bullion is traditionally considered a hedge against both inflation and geopolitical uncertainty.
“We see near-term price projection target at the $2,874 level, followed by the psychological $3,000 level,” IG market strategist Yeap Jun Rong said.
Meanwhile, global bullion banks are flying gold into the United States from trading hubs catering to Asian consumers, including Dubai and Hong Kong, to capitalize on the unusually high premium that U.S. gold futures are enjoying over spot prices.
Also on investors’ radar this week are several key U.S. jobs reports, including U.S. job openings data due later in the day, the ADP employment report on Wednesday, and payrolls report on Friday.
Among other metals, spot silver edged higher 0.3% to $31.46 per ounce, platinum added 0.1% to $965.20, and palladium gained 0.6% to $1,015.50.
Markets in China, the world’s top gold consumer, were closed for the Lunar New Year holiday and will resume trade on Wednesday.
