Gold took a breather on Tuesday after a massive 10% run since the start of the year. But Wall Street sees more room to run on the heels of recent tariff announcements.
Yahoo Finance’s Ines Ferré has the details:
On Tuesday, gold futures (GC=F) pulled back after jumping to an all-time high past $2,960 over the past 24 hours in reaction to President Donald Trump’s tariff plan against steel and aluminum imports.
“We continue to see gold as an effective portfolio hedge and diversifier,” Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, wrote in a note Tuesday.
Marcelli added: “We recently raised our gold forecast to USD 3,000/oz for 2025 as we believe the metal will continue to be supported amid fragile risk sentiment and strong demand.”
On Monday the president signed an executive order raising duties on steel and aluminum imports to 25% starting on March 12. The European Union has vowed to react with its own countermeasures, fueling concerns of a trade war.
Meanwhile, this week, Trump is expected to unveil a retaliatory tariff plan against countries that impose levies on US goods.
“In addition to tariff uncertainty and geopolitical tensions, further rate reductions from the Federal Reserve later this year should also boost the investment case for gold,” UBS’s Marcelli said.
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