Gold prices remain near record highs as Trump tariffs loom

Investing.com-- Gold prices steadied near all-time highs Wednesday, as traders awaited more clarity on fresh trade tariffs from the Trump administration.

At 08:05 ET (13:05 GMT), XAU/USD traded largely unchanged at $3,123.72 per ounce, just below Tuesday’s all-time high of $3149.03. Gold Futures rose 0.5% to $3,161.31 an ounce.

Trump tariff details due

The yellow metal had hit consecutive fresh record-highs in the last four sessions, but traders were cautious on the day of Trump tariffs, leading to increased volatility on Wednesday.

U.S. President Donald Trump is poised to implement extensive reciprocal tariffs later in the session, a date Trump has termed "Liberation Day", targeting a broad spectrum of trading partners to bolster U.S. manufacturing and address perceived unfair trade practices. 

These tariffs could elevate consumer prices and potentially dampen global economic growth, and the uncertainty surrounding these policies has driven investors toward gold, sending it to record highs. 

"Gold is one of the best-performing major commodities this year, up 19% year-to-date, driven by trade frictions, economic uncertainty, central bank buying, and inflows into ETF holdings," said analysts at ING, in a note.

"President Trump’s unpredictable trade policy has been the key driver for gold so far in 2025. We see uncertainty over trade and tariffs continuing to buoy gold prices."

Other precious metals were mixed. Platinum Futures rose 0.3% to $999.55 an ounce, while Silver Futures gained 0.8% to $34.588 an ounce.

Weakening econ data complicates Fed rate outlook

Traders are also looking for more guidance of the likely rate-cutting path by the Federal Reserve this year.

Data released earlier Wednesday showed that private employers in the U.S. added more roles than anticipated in March, as ADP private payrolls increased by 155,000 last month, rising from an upwardly-revised level of 84,000 in February. Economists had anticipated a reading of 118,000.

This followed the February Job Openings and Labor Turnover Survey (JOLTS) report showing job openings declined in January, signaling a gradual cooling of the labor market amid rising economic uncertainties.

The ISM Manufacturing PMI also recorded its first contraction this year. 

Analysts warn that weaker economic data complicates the Fed’s rate outlook, as restrictive policy might further slow growth, yet inflation risks from new trade tariffs limit room for easing.

Copper gains on strong Chinese factory data

Copper prices rose on Wednesday, a day after after better-than-expected Chinese factory data boosted sentiment.

Data on Tuesday showed that China’s Caixin Manufacturing PMI climbed to 51.2 in March, its highest level since December 2024, indicating a steady expansion in industrial activity.

Benchmark Copper Futures on the London Metal Exchange rose 0.3% to $9,714.45 a ton. Copper Futures expiring in May climbed 0.7% to $5.0715 a pound.

The London Metal Exchange average daily volumes gained 5.9% in the first quarter of 2025, marking the highest quarterly levels in the last 11 years, the exchange said on Wednesday.

The exchange, the world’s oldest and largest market for industrial metals, said average daily volumes rose to 698,209 lots in the first three months of the year.

(Ayushman Ojha contributed to this article.)