(RTTNews) – After a slight dip in the previous session, gold prices saw a significant rebound during Wednesday’s trading.
Gold for April delivery rose by $21, or 0.7 percent, reaching $3,139.90 an ounce, following a decline of $3.90, or 0.1 percent, to $3,118.90 an ounce on Tuesday.
This increase more than compensated for the minor drop experienced on Tuesday, marking a new record closing high for gold.
Gold’s rise was attributed to its status as a safe haven asset amidst rising concerns regarding the effects of President Donald Trump’s reciprocal tariffs on U.S. trading partners.
Trump is set to announce the new tariffs during a Rose Garden event shortly after market close, with White House press secretary Karoline Leavitt indicating that the tariffs will be “effective immediately.”
Reports suggest that Trump’s team was still working out the specifics of the plan before the announcement, although a White House official informed CNBC’s Megan Cassella that the president has made a final decision on the approach.
The increase in gold prices also coincided with a decline in the value of the U.S. dollar, as the U.S. dollar index dropped by 0.4 percent.
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On Wednesday, the price of gold experienced a significant increase following a slight downturn the previous day. For April delivery, gold surged by $21, or 0.7%, reaching $3,139.90 an ounce after a minor fall to $3,118.90 an ounce on Tuesday. This rise signifies not just a recovery but also a new record closing high for the precious metal, showcasing its continued desirability in the market.
The boost in gold prices can be attributed to the growing concerns surrounding U.S. trade policies, particularly those stemming from President Donald Trump’s impending announcement of reciprocal tariffs on U.S. trade partners. The announcement was expected to take place in a Rose Garden event shortly after trading hours, with White House press secretary Karoline Leavitt stating that the tariffs would be implemented “effective immediately.” Although details of the tariffs were still being finalized in the lead-up to the announcement, it was reported that the president had reached a decision on how to proceed.
In addition to the geopolitical uncertainties affecting trade relations, the increased price of gold was supported by a concurrent decline in the value of the U.S. dollar. The U.S. dollar index dropped by 0.4%, further enhancing gold’s attractiveness to investors seeking refuge from a fluctuating currency and volatile market conditions.
In summary, the dynamics of the market were visibly influenced by the combination of geopolitical concerns and fluctuations in currency values, which reinforced gold’s status as a safe haven asset. The interplay of these factors resulted in a remarkable rebound in gold prices on Wednesday, offsetting the modest decline from the previous day and leading to a new record high closing price.
