Gold eases on a stronger dollar; concerns loom over Trump’s reciprocal tariff plans

“There are real concerns around US economic growth and as well as inflation. US is likely to face a stagflationary scenario, and that could support prices,” said Soni Kumari, a commodity strategist at ANZ.

US consumer confidence plunged to the lowest in more than four years in March, with households fearing a recession and higher inflation triggered by tariffs.

Gold, a hedge against geopolitical and economic instabilities, has risen 15 per cent so far this year, scaling an all-time peak of US$3,057.21 on March 20.

Several Federal Reserve officials are due to speak later in the day. Markets await US personal consumption expenditures data on Friday for clues on monetary policy.

“We are forecasting US$3,200 by September,” ANZ’s Kumari said, adding that any hawkish comment from the Fed could be a factor slowing gold’s rally.

Elsewhere, the US on Tuesday reached deals with Ukraine and Russia to pause their attacks at sea and against energy targets, with Washington agreeing to push to lift some sanctions against Moscow.

Spot silver fell 0.5 per cent to US$33.57 an ounce and platinum lost 0.5 per cent to US$971.35. Palladium slipped 0.5 per cent to US$951.23.
-TheStar