April 3, 2025 – Gold prices continue to maintain gains above the $3,100 mark in Wednesday’s European trading session, as investors closely monitor an impending announcement on reciprocal tariffs by US President Donald Trump. The precious metal, which touched an all-time high earlier in the week, is benefiting from ongoing trade tensions and expectations of a Federal Reserve interest rate cut.
Market analysts attribute the resilience of gold prices to growing concerns over the economic impact of Trump’s aggressive trade policies. Rising geopolitical uncertainties further bolster demand for the safe-haven asset, reinforcing its upward momentum. Meanwhile, subdued demand for the US dollar also provides additional support to gold.
Investors anticipate that the Federal Reserve may soon resume rate cuts amid concerns that escalating tariffs could slow down the US economy. The prospect of lower interest rates enhances the appeal of gold, which does not offer interest-bearing returns.
Despite the bullish outlook, traders remain cautious, awaiting further clarity on US tariff policies. The $3,100 price level serves as a crucial support point, with a potential break below this threshold leading to a decline toward $3,076, Monday’s weekly low. A further drop could test support levels at $3,057 and $3,036, with the psychologically significant $3,000 mark acting as a strong floor for prices.
As global markets remain on edge, all eyes are on Washington for the upcoming tariff announcement, which could have far-reaching implications for trade and economic stability.