March 25 (Reuters) – Gold edged up on Tuesday as uncertainty surrounding U.S. President Donald Trump’s tariffs expected to take effect next week drove safe-haven demand amid fears of economic slowdown, trade tensions, and inflation concerns.
Spot gold was up 0.1% at $3,015.42 an ounce, as of 0425 GMT. U.S. gold futures firmed 0.1% to $3,019.40.
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“Uncertainty remains over the extent and scope of upcoming U.S. reciprocal tariffs … gold continues to find some support as a hedge against potential surprises,” said IG market strategist Yeap Jun Rong.
Trump said on Monday automobile tariffs are coming soon even as he indicated that not all of his threatened levies would be imposed on April 2, a move Wall Street took as a sign of flexibility on a matter that has roiled markets for weeks.
Trump’s tariff policies are widely seen as likely to contribute to a slowdown in economic growth, trigger further trade tensions, and flare inflation.
Atlanta Federal Reserve President Raphael Bostic said he anticipates slower progress on inflation in the coming months and, as a result, now sees the Fed cutting its benchmark rate only a quarter of a percentage point by this year-end.
Bullion, seen as a hedge against geopolitical and economic uncertainties, often thrives in a low-interest-rate environment.
Expectations of rate cuts from the Fed this year, tariff jitters, and geopolitical instability have helped gold rise around 15% so far in 2025.
Markets will next look to the Personal Consumption Expenditures index, the Fed’s preferred inflation measure, due on Friday.
Meanwhile, funds that invest in gold miners are set to attract their largest net monthly inflows in over a year in March, as record-high gold prices improve firms’ profit outlooks and boost cash flow.
Spot silver rose 0.3% to $33.1 an ounce, platinum eased 0.1% to $973.35 and palladium added 0.3% to $953.78.
