FX.co ★ Gold Eases but Remains Near Record High

Gold prices receded to below $3,130 per ounce on Thursday, after reaching a new record high above $3,160 earlier in response to increased risk aversion following President Donald Trump's tariff announcement. Trump proposed a 10% baseline tariff on imports from every country, with higher rates levied on several nations maintaining trade surpluses with the United States—such as China (34%), the EU (20%), and Japan (24%). Additionally, a 25% tariff on all foreign-manufactured automobiles was implemented today. According to Trump, these initiatives are expected to enhance domestic manufacturing and curtail trade deficits. The precious metal continued to find support from anticipated interest rate cuts, central bank purchases, and robust demand for gold-backed exchange-traded funds (ETFs), highlighted by China’s ETF adding 233,000 ounces. Investors are now looking toward Friday's nonfarm payrolls for further clarity on the Federal Reserve’s interest rate policy, particularly after weak U.S. employment data and a lackluster manufacturing report shifted the attention in that direction.