Gold prices climb on safe-haven demand ahead of US reciprocal tariffs

Gold prices advanced on Wednesday as anxious investors flocked to the safe-haven metal, bracing for announcements on U.S. reciprocal tariffs that could escalate the global trade war.

FUNDAMENTALS

* Spot gold was up 0.3% at $3,120.64 an ounce, as of 0026 GMT, after hitting an all-time high of $3,148.88 in the previous session.


* U.S. gold futures were up 0.2% at $3,151.80.

* Suspense hangs over the market as uncertainty is looming large over the details of the U.S. tariffs slated for imposition later in the day, which Trump has dubbed "Liberation Day." The White House confirmed new tariffs will be imposed, though it provided no details on the size or scope.

* Investors are also awaiting the automobile tariffs, which will take effect on April 3.

* Trump's tariff policies could ratchet up inflation, potentially putting the brakes on economic growth and escalating trade disputes.

* Gold, viewed as a safeguard against economical and political uncertainties, typically flourishes in an environment of low interest rates.

* Disappointing new U.S. jobs data and a weak manufacturing report highlight an emerging concern among Federal Reserve officials that employment could slip, while the threat of tariff-driven inflation limits their ability to do anything about it.

* Investors are also awaiting ADP employment report due later in the day, and non-farm payrolls report on Friday that could provide insights into the Fed's future path for interest rate cuts.

* Spot silver eased 0.3% to $33.64 an ounce, while platinum firmed 0.6% to $985.30 and palladium was steady at $983.50.

DATA/EVENTS (GMT) 1400 US Factory Orders MM Feb.