Gold prices remained stable on Wednesday, March 26, as traders adjusted their positions ahead of U.S. President Donald Trump’s anticipated reciprocal tariff measures, raising concerns over potential inflation and economic slowdowns.
Gold Prices Remain Unchanged
Spot gold held at $3,020.87 an ounce at 0026 GMT, while U.S. gold futures were unchanged at $3,025.10.
Plummeting U.S. Consumer Confidence
U.S. consumer confidence dropped to its lowest level in more than four years in March, as households grew increasingly concerned about a potential recession and rising inflation driven by tariffs. The market’s focus is now on the possible reciprocal tariffs the U.S. administration may implement by April 2, further heightening uncertainty.
Impact of Tariffs on Inflation and Economic Growth
Trump’s tariff policies are feared to be inflationary, potentially stalling economic growth and increasing trade tensions. Gold, traditionally seen as a safe haven against economic and geopolitical instability, has surged 15% this year, reaching a record high of $3,057.21 on March 20.
Fed Officials and Economic Data Awaited
With several Federal Reserve officials set to speak later in the day, the markets are awaiting further insights into the Fed’s monetary policy, particularly as tariff-related uncertainty lingers. Additionally, traders are closely watching the upcoming U.S. personal consumption expenditures data, expected on Friday, for clues about the Fed’s future actions.
Geopolitical Developments
On the geopolitical front, the U.S. reached agreements with both Ukraine and Russia to pause attacks at sea and on energy infrastructure, with the U.S. agreeing to push for lifting some sanctions on Moscow.
Meanwhile, other precious metals saw mixed movements. Spot silver dropped 0.3% to $33.65 an ounce, platinum eased by 0.1% to $975.96, and palladium remained steady at $956.12.
Related topics:
