Gold futures closed higher on Tuesday, recovering some of the losses from the previous two sessions.
Dollar Weakness Boosts Gold
The yellow metal’s gains were supported by the weakening dollar, fueled by uncertainty surrounding U.S. President Donald Trump’s tariff plans. Trump announced that tariffs on automobiles, aluminum, and pharmaceuticals would soon be introduced, though he hinted that some countries might receive exemptions, without providing further details.
Reports suggest that the Trump administration may adopt a more cautious stance on tariffs, potentially excluding specific industry-related tariffs.
Dollar Index and Gold Prices
The dollar index, which had dropped to 103.94 during the early New York session, managed to recover slightly and closed at 104.12, marking a 0.14% decrease from the previous session.
Gold futures for March rose by $10.60, or approximately 0.35%, settling at $3,023.70 per ounce.
Other Precious Metals and Commodities
Silver futures for March saw a significant increase, rising by $0.737, or about 2.22%, to close at $34.002 per ounce. Copper futures also climbed by $0.1230, or roughly 2.4%, finishing at $5.1870.
Tariff Threats and Global Uncertainty
Ongoing tariff threats from the U.S. and potential countermeasures from other nations, coupled with rising unrest in the Middle East, have enhanced gold’s appeal as a safe-haven asset.
U.S. Consumer Confidence Declines
A report from the Conference Board revealed that U.S. consumer confidence fell more than expected in March. The consumer confidence index dropped to 92.9, down from a revised 100.1 in February. Economists had predicted a smaller decline, with expectations for the index to fall to 94.2.
Stephanie Guichard, Senior Economist at the Conference Board, noted, “Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022.”
U.S. New Home Sales Show Modest Growth
On a positive note, the Commerce Department reported that new home sales in the U.S. rose by 1.8% in February, reaching an annual rate of 676,000. This followed a 6.9% decline in January, which had revised to a rate of 664,000. Economists had forecasted a 3.5% increase to 680,000.
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