Gold Price News: Gold Rises on Renewed Safe Haven Appeal

Gold prices pushed higher on Tuesday, to reclaim the $2,900 an ounce mark, adding to Monday’s gains, as the markets went back into risk-off mode, supporting safe haven assets like gold.

Prices rose as high as $2,928 an ounce on Tuesday, up from around $2,893 an ounce in late trades on Monday. The renewed strength on Tuesday marked the second straight day of gains for gold, which followed a slump from all-time highs seen on February 24^th.

Macro worries resurface as US tariffs kick in

Gold took support from renewed interest in safe haven assets as stock markets fell on Tuesday. The markets appeared to take a dim view of US President Donald Trump’s decision to follow through on 25% tariffs on imports from Canada and Mexico and 20% on goods from China. If the mounting trade war escalates further, it is likely to result in disrupted international supply chains, compromising companies’ ability to source needed materials and hampering global commerce.

All this benefits gold as a perceived sanctuary in uncertain times, and the impact is only magnified by further uncertainty over the conflict in Ukraine after President Trump reportedly cancelled military aid to the country – taken in the context of a potential minerals deal currently under negotiation between the two countries.

Upcoming data/events

Looking ahead, Wednesday will bring a raft of US economic data, including the S&P Global Composite PMI figures and monthly US ISM Services data, both for February, followed by factory orders for January. This will be followed by the start of the Chinese National People’s Congress in Beijing, which has the potential to affect financial markets, given the possibility that China unveils new measures to stimulate its economy. The congress is part of China’s ‘two sessions’ political event, which provides an important window on the country’s development plan for the coming year, including expected measures to ensure that its GDP target is achieved.