Gold pauses for breath after record run on safe-haven demand
Shafaq News/ Gold
prices eased on Tuesday on profit-taking but remained near record highs as
investors turned to the safe-haven asset ahead of President Donald Trump's
planned announcement of sweeping tariffs on countries that have a trade
imbalance with the US
Spot gold was down 0.3% at $3,113.43 per ounce as of 1:46
p.m. ET (1746 GMT), after hitting an all-time high of $3,148.88 earlier in the
day.
US gold futures settled 0.1% lower at $3,146.
It's "not surprising to see a little bit of profit
taking, particularly given that the market had become rather overbought ... I
don't really see much of a change in the fundamentals ... it's a perfect storm
for gold," said Peter Grant, vice president and senior metals strategist
at Zaner Metals.
Markets and consumers are waiting for details of Trump's
planned tariffs, set to be announced on Wednesday. White House aides have
drafted plans for tariffs of around 20% on most U.S. imports, the Washington
PostreportedTuesday.
Gold, traditionally seen as a hedge against geopolitical and
economic uncertainties, closed out its strongest quarter since 1986 on Monday,
and climbed over $3,100/ounce, marking one of the most significant upswings in
the precious
metal's history.
Goldman
Sachs raised the probability of a U.S. recession to 35% from 20% on
Monday, and said it expected more rate cuts by the Federal Reserve.
Non-yielding bullion thrives in a low-interest-rate environment.
"We continue to see the gold prices moving
higher," due in part to increasing gold holdings by physically backed ETFs
and robust central bank purchases, said Ryan McIntyre, senior portfolio manager
at Sprott Asset Management.
On a technical basis, gold's Relative Strength Index (RSI)
stands above 70, indicating the metal is overbought.
Job openings fell to 7.568 million by the end of February,
the Labor Department's Bureau of Labor Statistics said in a Tuesday report,
compared with economists' expectation of 7.616 million. Investors are also
awaiting Friday's non-farm payrolls report for cues on the Fed's rate cut
trajectory.
Silver fell 1.4% to $33.6 an ounce, platinum was down 0.8%
at $984.64. Palladium fell 0.2% to $981.0.
