Following a significant increase in recent sessions, the price of gold experienced a slight downturn during trading on Tuesday.
Gold for April delivery slipped by $3.90, or 0.1 percent, to $3,118.90, ending a three-day winning streak and retreating from the record closing high achieved on Monday.
This modest decline could be attributed to profit-taking after the recent rally, although selling pressure remained relatively low due to ongoing concerns regarding President Donald Trump’s trade policies ahead of the announcement of reciprocal tariffs scheduled for Wednesday.
White House press secretary Karoline Leavitt stated, “Wednesday will be Liberation Day in America, as President Trump has proudly named it.”
She further remarked, “The President will unveil a tariff plan aimed at reversing the unfair trade practices that have been depriving our country for years. This is being done in the best interest of American workers.”
According to a report from the Washington Post this morning, White House aides are drafting a proposal to impose tariffs of approximately 20 percent on most imports to the U.S.
However, the Washington Post also noted that White House advisers cautioned that multiple options are being considered and no final decision has yet been reached.
In terms of U.S. economic indicators, a report from the Institute for Supply Management revealed a contraction in manufacturing activity in March following two months of growth.
The ISM reported that the manufacturing PMI fell to 49.0 in March from 50.3 in February, with a reading below 50 illustrating contraction. Economists had anticipated a more modest decline to 49.5.
The opinions expressed in this article are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
On Tuesday, the price of gold slightly declined, marking a pause after a notable rise in previous sessions. Gold for April delivery fell by $3.90, or 0.1%, settling at $3,118.90. This dip interrupted a winning streak of three consecutive sessions, and came off a record closing high reached on Monday.
The pullback in gold prices can be attributed to profit-taking following the recent surge in value. However, the selling pressure remained relatively calm amidst ongoing concerns regarding President Donald Trump’s trade policies, particularly with an important announcement regarding reciprocal tariffs expected the following day. White House press secretary Karoline Leavitt highlighted the significance of this day, referring to it as “Liberation Day in America,” as Trump plans to announce the tariff strategy aimed at addressing long-standing trade injustices affecting U.S. workers.
According to a report by the Washington Post, White House officials are considering a proposal that would impose tariffs of approximately 20% on a majority of imports into the U.S. Despite this information, it was noted that various options remain under discussion and no definitive decision has yet been made.
In addition to developments in gold markets and trade policies, economic data released on Tuesday indicated a contraction in the U.S. manufacturing sector. The Institute for Supply Management (ISM) reported that the manufacturing Purchasing Managers’ Index (PMI) dropped to 49.0 in March, down from 50.3 in February. An index value below 50 signifies a contraction, contrasting with economists’ expectations of a marginal decline to 49.5.
Overall, the market reactions reflected a complex interplay of profit-taking behavior, economic indicators, and impending government policy announcements, particularly regarding trade, which could significantly influence market dynamics in the near future.
