Gold prices surged above $3,130 per ounce on Wednesday, rebounding towards the highs seen in the previous session. This movement was spurred by growing risk aversion, as markets anticipated the announcement of new US tariffs that could further intensify the global trade tensions. The White House, while withholding specifics about the extent of these tariffs, announced that their implementation would be immediate following their announcement. President Trump's comments suggested that a wide array of countries might be affected, causing apprehension about significant economic repercussions.
Additional factors bolstering gold prices included expectations of potential interest rate cuts, ongoing central bank purchases, and robust demand for gold-backed exchange-traded funds (ETFs). Notably, the Chinese gold ETF saw an increase of 233,000 ounces of notional bullion over the past week. Concurrently, recent economic data from the United States reflected weakness, particularly in jobs figures and a disappointing manufacturing report. Investors are now turning their attention to Friday's nonfarm payroll report, seeking further clarity on the Federal Reserve's future interest rate decisions.