
Gold Hovers Near Record Highs As Trade And Geopolitical Risks Persist
Gold prices hovered near record highs on Tuesday, supported by ongoing safe-haven demand as uncertainty surrounding the US trade policy persisted. After recently excluding smartphones and computers from new reciprocal tariffs, President Donald Trump indicated potential exemptions for auto parts. However, this was offset by national security investigations into pharmaceutical and semiconductor imports, raising the risk of new trade barriers.
On the demand side, flows into gold-backed ETFs remained strong, especially across Asia, where demand has accelerated sharply in April. Central banks also maintain a steady pace of accumulation, supporting a bullish outlook for the precious metal.
On the geopolitical front, recent developments continue to underpin gold's safe-haven appeal. In Eastern Europe, cross-border strikes between Russia and Ukraine signalled continued instability. In the Middle East, ceasefire talks between Israel and Hamas appeared to stall, limiting hopes for near-term de-escalation.
Looking ahead, investor attention turns to upcoming speeches from Federal Reserve officials and macroeconomic data later this week. Signs of economic softness or dovish commentary from policymakers may fuel further upside for gold, while a firmer stance could cap near-term gains.
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