Gold Prices Predicted to Reach $3,000 Amid Tariff Uncertainty: Analyst

Fast Summary

• Gold Performance: Spot gold traded between $2,891 and $2,927 on March 6, 2025. MCX April Gold contract was Rs 86,070,up 0.28%.
• Tariff Developments: US exempts Mexico and Canadian auto parts from a 25% tariff until April.
• Economic Events: European Central Bank lowered interest rates; Euro rose due to expectations of policy easing ending soon.
• US Economic Data: Mixed job reports; nonfarm productivity beat estimates at 1.5%; trade deficit widened to $13.4 billion in January.
• US Growth Concerns: Trade policies may slow US growth by reducing GDP by around 1.3%.
• Currency Movements: US dollar Index fell for the fourth day; Germany’s bund yields rose significantly.
• Gold Demand and Outlook:

– Central banks increased reserves by 18 tonnes in January.
– Gold ETF holdings at a cycle high of 85.895MOz.
– Positive outlook for gold due to economic uncertainties.

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