Gold steadies as markets weigh trade uncertainty

25 March 2025

Gold steadies as markets weigh trade uncertainty and geopolitical risks

Today’s markets analysis on behalf of Konstantinos Chrysikos Head of Customer Relationship Management at Kudotrade

Gold prices stabilized to some extent on Tuesday after a correction, as traders assessed geopolitical factors and evolving trade policies. In the Middle East, ongoing tensions continued to fuel safe-haven demand. Meanwhile, in Eastern Europe, hopes for a ceasefire weigh on gold. Diplomatic progress could dampen gold’s appeal while any setback in negotiations may reinforce demand for the precious metal.

At the same time, trade developments remain in focus. On Monday, President Donald Trump signaled that not all planned tariffs will take effect on April 2. However, he confirmed that automobile tariffs are imminent and announced new sanctions on nations purchasing Venezuelan oil, which adds another layer of complexity. Ongoing trade tensions could dampen economic growth, supporting gold prices. In this regard, investors could continue to monitor economic data and updates on US trade policy. The latter could continue to fuel volatility in the market.

 

Zaid Barem / ymm