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Gold rebounds above $3,000/oz as trade war fears, weaker dollar support
Tuesday, 8 April 2025 21:31 WIB | GOLD |GOLDEMAS

Gold prices rose back above $3,000 per ounce on Tuesday as a weaker U.S. dollar and escalating trade tensions between the world's two largest economies lifted demand for the safe-haven asset.

Spot gold was up 0.8% at $3,007.21 an ounce by 08:44 a.m. ET (1244 GMT), moving away from a more than three-week low touched on Monday in a pullback from last week's record high of $3,167.57. U.S. gold futures gained 1.6% to $3,021.90.

"Despite falling for three consecutive sessions, gold remains bullish with trade tensions and the prospect of lower U.S. interest rates boosting its allure," said Lukman Otunuga, senior research analyst at FXTM.

"A solid breakout above $3,055 may open the doors back toward $3,100 and $3,130. Sustained weakness below $3,000 could see gold slip toward $2,950 and $2,930."

Concerns over a global trade war since U.S. President Donald Trump's announcement of reciprocal tariffs on April 2 have raised fears of a recession and prompted investors to take refuge in the safe-haven assets like gold.

Investors are now looking forward to minutes from the U.S. Federal Reserve's latest policy meeting due on Wednesday for more clues on the path of rate cuts.

Traders are pricing in about 40% chance of a Fed cut in May. Zero-yield bullion tends to thrive in a low interest rate environment.

Elsewhere, spot silver gained 0.4% to $30.23 an ounce, platinum rose 1.3% to $925.33 and palladium eased 0.5% to $914.18.

Source: Reuters

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