On Tuesday, spot gold prices reached an all-time high of $3,145.38 an ounce, while U.S. gold futures rose to $3,171.80. This surge in gold prices is attributed to concerns that U.S. President Donald Trump's planned reciprocal tariffs, set to be unveiled Wednesday and take effect on April 3, could fuel inflationary pressures and economic instability. Spot silver also increased to $34.13 an ounce. Market participants are closely monitoring upcoming U.S. job openings data, the ADP employment report, and the non-farm payrolls report for insights into the Federal Reserve's rate-cut trajectory.
Anticipation of the April 2 tariffs has prompted a defensive stance among investors, leading some to de-risk and turn to gold as a safe-haven asset. Meanwhile, New York Federal Reserve President John Williams noted that maintaining steady interest rates will allow officials to analyze incoming data more effectively. Gold prices have surged this year, increasing by over 19 percent, or Rs 14,840 per 10 grams. This rise is driven by heightened demand as a safe-haven investment amidst geopolitical uncertainty and Trump's tariff policies, with the price of 22-carat gold in Hyderabad reaching Rs 85,100 per 10 grams.