Gold prices extend rise after Trump unveils tariff plans

By Brijesh Patel

(Reuters) - Gold prices extended gains on Wednesday to hover near all-time highs, boosted by safe-haven inflows after U.S. President Donald Trump announces reciprocal tariffs that would escalate a trade war.

Spot gold was up 0.6% at $3,129.46 an ounce at 04:53 p.m. EDT (2053 GMT). U.S. gold futures settled 0.6% higher at $3,166.20.

"The reciprocal tariffs are much more aggressive than expected, which should lead to asset market selloffs and a lower dollar," said Tai Wong, an independent metals trader.

"Gold's prospects are excellent here with $3,200 the new short-term target. There are plenty of unanswered questions and the sense that many things might be negotiable will make markets very volatile in the short term," he added.

Trump said on Wednesday that he would impose a 10% baseline tariff on all imports to the United States and higher duties on some of the country's biggest trading partners, in a move that ratchets up a trade war that he kicked off on his return to the White House.

Trump displayed a poster that listed reciprocal tariffs, including 34% on China and 20% on the European Union, as a response to duties put on U.S. goods.

Gold, often used as a safe store of value during times of political and financial uncertainty, has risen more than $500 so far in 2025, and hit a record peak of $3,148.88 on Tuesday.

"A breach of resistance at $3,147.41/$3,149.84 would bode well for a push to $3,200, and lend confidence to bullish outlooks that highlight $3,300 and $3,500," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

The dollar index slipped 0.4% following Trump's tariff announcement, making gold less expensive for other currency holders.

Meanwhile, the ADP National Employment Report on Wednesday showed U.S. private payrolls growth accelerated in March. The biggest jobs data this week will come on Friday with the release of the monthly U.S. employment report.

Among other metals, spot silver rose 0.7% to $33.99 per ounce, while platinum gained 0.7% to $986.18 and palladium was down 0.8% to $975.93.

(Reporting by Brijesh Patel and Anmol Choubey in Bengaluru. Editing by Paul Simao, Mark Potter, Krishna Chandra Eluri and Alan Barona)