Gold Rises Slightly Amid Tariff Uncertainty and Record Highs, Backed by Inflation Concerns and Strong ETF Flows

Gold prices edged up on Tuesday amid continued uncertainty over U.S. President Donald Trump's tariff plans and their impact on the global economy.

FUNDAMENTALS

• Spot gold was up 0.1% at $3,211.49 an ounce as of 0000 GMT. Bullion hit a record high of $3,245.42 in the previous session.

• U.S. gold futures edged up 0.1% to $3,227.90.

• The Trump administration is proceeding with probes into imports of pharmaceuticals and semiconductors as part of a bid to impose tariffs on both sectors, on grounds that extensive reliance on foreign production of medicine and chips is a national security threat, Federal Register filings on Monday showed.

• Trump said on Sunday he would be announcing the tariff rate on imported semiconductors over the next week, keeping market participants on edge.

• Non-yielding gold, a traditional hedge against global uncertainties and inflation, also tends to thrive in a low-interest-rate environment.

• Americans' expectations for near-term inflation hit the highest level since the fall of 2023 in March.

• Traders see around 86 basis points worth of interest rate cuts by the end of 2025.

• Meanwhile, investment flows into Chinese physically backed gold exchange-traded funds so far this month have exceeded those for all of the first quarter and overtaken inflows registered by U.S.-listed funds, World Gold Council data showed.

• Spot silver lost 0.3% to $32.26 an ounce, platinum fell 0.3% to $948.60, and palladium eased 0.6% to $950.25.

DATA/EVENTS (GMT)
0600 UK Claimant Count Unem Chng Mar
0600 UK ILO Unemployment Rate Feb
0600 UK HMRC Payrolls Change Mar
0645 France CPI (EU Norm) Final MM, YY Mar
0645 France CPI YY NSA, MM NSA Mar
0900 Germany ZEW Economic Sentiment, ZEW Current Conditions Apr
1100 EU Reserve Assets Total Mar
1230 US Import Prices YY Mar

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