Gold prices remained strong on Wednesday, trading at $3,128.62 an ounce after hitting a record high of $3,148.88 on Tuesday. Investors are watching President Trump’s tariff announcement, scheduled for 2000 GMT, which he has promoted as “Liberation Day.” Proposed tariffs affecting multiple countries could slow global growth and heighten trade tensions.
The metal has become a favored safe-haven amid persistent economic and geopolitical uncertainty. Prices are now more than $400 higher than when Trump took office in January. UBS projects gold could reach $3,200 an ounce and potentially climb to $3,500 if an economic slowdown accelerates. The outlook follows data showing U.S. manufacturing contracted in March, while markets await key employment figures later this week that could influence the Federal Reserve’s policy stance.
Analysts say further gains for gold are possible if tariff measures prompt investors to prepare for stagflation or recession. Trade disruptions and slower growth tend to boost demand for assets perceived as stores of value, and gold often benefits when interest-rate expectations shift or inflation concerns rise. For now, traders remain cautious, weighing policy developments and upcoming economic indicators before committing to larger positions.
Market participants will be monitoring several factors in the near term: the details and scope of any tariffs announced, incoming employment and inflation data, and central-bank signals that would affect real yields. Combined, those elements will shape investor expectations about growth, inflation and the attractiveness of precious metals versus other asset classes. As a result, gold’s path in the coming weeks will likely reflect a mix of geopolitical risk sentiment and evolving macroeconomic data.