Gold slips after record quarter as markets await US tariff decision
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Gold prices held steady on Wednesday near $3,120 per ounce after a historic surge in the first quarter of 2025, during which the precious metal gained an exceptional 19%. The run marked gold’s strongest quarterly performance since 1986, driven by heightened geopolitical tension, central bank accumulation, and renewed investor demand for safe-haven assets. As markets await the outcome of a sweeping tariff announcement from the White House, the momentum in bullion has shifted into a phase of cautious consolidation.
The anticipation surrounding U.S. President Donald Trump’s widely telegraphed “reciprocal tariff” plan, set to be unveiled today, has introduced a layer of uncertainty across risk assets. While gold has typically benefitted from risk aversion, the prospect of the metal itself being subjected to trade measures has injected a degree of hesitation into recent flows. Traders are watching closely for whether gold or related supply chains might be impacted by the broader trade actions.
Gold’s dramatic ascent was punctuated by a series of new record highs. On April 1, prices briefly touched $3,150 — the 18th record high of the year — before paring gains into the close. Despite this pullback, the technical structure remains robust, underpinned by consistent demand from institutional buyers, including sovereign wealth funds and central banks, as well as heightened interest from retail investors seeking refuge from volatile equity and currency markets.
The backdrop for gold’s strength also includes growing recession concerns in the United States, rising inflation expectations, and a weakening dollar outlook, all of which have contributed to bullion’s appeal. With gold now consolidating after such a rapid advance, the coming days may prove pivotal in determining whether the uptrend will extend further or transition into a broader corrective phase.
As the quarter progresses, the sustainability of gold’s rally will hinge on developments in U.S. fiscal and trade policy, the trajectory of real yields, and shifts in investor sentiment across global markets. In the near term, all eyes are on Washington, where clarity on tariffs may help define the next directional move in one of the most active commodities of the year.
The anticipation surrounding U.S. President Donald Trump’s widely telegraphed “reciprocal tariff” plan, set to be unveiled today, has introduced a layer of uncertainty across risk assets. While gold has typically benefitted from risk aversion, the prospect of the metal itself being subjected to trade measures has injected a degree of hesitation into recent flows. Traders are watching closely for whether gold or related supply chains might be impacted by the broader trade actions.
Gold’s dramatic ascent was punctuated by a series of new record highs. On April 1, prices briefly touched $3,150 — the 18th record high of the year — before paring gains into the close. Despite this pullback, the technical structure remains robust, underpinned by consistent demand from institutional buyers, including sovereign wealth funds and central banks, as well as heightened interest from retail investors seeking refuge from volatile equity and currency markets.
The backdrop for gold’s strength also includes growing recession concerns in the United States, rising inflation expectations, and a weakening dollar outlook, all of which have contributed to bullion’s appeal. With gold now consolidating after such a rapid advance, the coming days may prove pivotal in determining whether the uptrend will extend further or transition into a broader corrective phase.
As the quarter progresses, the sustainability of gold’s rally will hinge on developments in U.S. fiscal and trade policy, the trajectory of real yields, and shifts in investor sentiment across global markets. In the near term, all eyes are on Washington, where clarity on tariffs may help define the next directional move in one of the most active commodities of the year.