Gold prices remained stable on Wednesday after reaching an all-time high in the previous session, as investors awaited details regarding U.S. President Donald Trump's tariff plans.
Spot gold increased by 0.6% to $3,128.41 an ounce, while U.S. gold futures rose 0.4% to $3,159.10.
With economic and geopolitical uncertainties prevailing, bullion has become a favored investment. Spot prices are now over $400 higher than they were prior to Trump's inauguration in January, having peaked at $3,148.88 on Tuesday.
For weeks, Trump has been promoting April 2 and is expected to announce sweeping new tariffs on multiple countries during a White House Rose Garden event at 2000 GMT. Experts warn that these tariffs could hinder economic growth and escalate trade disputes.
"Gold is currently receiving strong support from geopolitical and macroeconomic factors. If Trump's proposed tariffs are aggressive, gold prices will likely rally again," said ANZ Commodity Strategist Soni Kumari.
Recent reports indicated a downturn in U.S. business conditions, with U.S. manufacturing contracting in March after two months of growth.
UBS's base forecast for gold this year is $3,200 per ounce, with an upside scenario potentially pushing prices to $3,500 in the event of a sharp economic slowdown, according to UBS analyst Giovanni Staunovo.
Market participants are also anticipating the ADP employment report later today and non-farm payroll data on Friday for insights into U.S. monetary policy.
"Gold is poised to outperform within the broader metals complex, although this could be affected if the U.S. Fed decides to raise interest rates," analysts at BMI stated.
In addition, spot silver rose by 0.5% to $33.90 an ounce, platinum decreased by 0.2% to $977.97, and palladium increased by 0.2% to $985.70.