On Wednesday (April 2nd) morning trading in the Asian market, spot gold fluctuated narrowly and is currently trading around $3114.90 per ounce. On Tuesday, the gold price surged and fell back. Spot gold had previously risen to around the 3150 mark, hitting a new historical high of $3148.85 per ounce, but then fell back due to profit taking, closing at $3114.03 per ounce, a decrease of about 0.3%. US President Trump plans to announce comprehensive tariffs on countries with trade imbalances with the United States on April 2, which has sparked a large amount of safe haven buying and helped gold prices continue to rise. However, as the deadline approaches, some bulls are taking profits ahead of schedule.

Gold has always been seen as a hedge against geopolitical and economic uncertainty. On Monday, gold closed with its strongest quarterly performance since 1986, breaking through $3100 per ounce and becoming one of the most significant gains in precious metal history.

It's not surprising to see some profit taking, especially considering the market has become quite overbought... "said Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals." I haven't seen any fundamental changes... This is a perfect storm for gold

The market and consumers are waiting for the tariff details that Trump plans to announce on Wednesday. The White House confirmed on Tuesday that President Trump will announce a series of equivalent tariffs on Wednesday, but did not disclose details such as the scale and scope of the imposition. Enterprises, consumers, and investors are concerned that this move will lead to an escalating global trade war.

For weeks, Trump has been proclaiming April 2 as "Liberation Day", a day when the United States will introduce large-scale reciprocal tariffs that could overturn the global trading system, and plans to announce the new tariffs at 4:00 pm Eastern Time (4:00 am Beijing time on Thursday) in the White House Rose Garden.

White House spokesperson Karoline Leavitt stated that the equivalent tariffs will take effect immediately after Trump's announcement, and a 25% car tariff will be imposed on April 3rd.

Trump has already imposed tariffs on steel and aluminum, and will double the tariffs imposed on goods from all major Asian countries. He also threatened to impose other tariffs multiple times, but they were ultimately cancelled or postponed.

The news announced by Levitt indicates that Trump plans to continue his tariff offensive. The President has a talented advisory team that has been studying these issues for decades, and our goal is to bring America back to its golden age, "she said at a press conference.

According to The Washington Post, Trump's aides are considering a plan to impose tariffs of about 20% on products from almost all countries, rather than targeting certain countries or products. According to the newspaper, the government estimates that the new tariffs will bring more than $6 trillion in revenue, which can be returned to Americans in the form of tax rebates.

A White House aide said that any reports before tomorrow's event are "just speculation".

Trump's actions have intensified tensions between the United States and its largest trading partner. Canada vows to respond with tariffs. Canadian Prime Minister Carney said in Winnipeg, "We will not put Canadian producers and Canadian workers at a disadvantage relative to American workers

American companies have stated that the "Buy Canadian Products" campaign has made it more difficult for their products to enter the Canadian market.

Other countries have also threatened to take countermeasures, despite their attempts to reach an agreement with the White House to avoid tariffs. According to informed sources, it is currently unclear whether these efforts will be successful before Wednesday, but it is hoped that these efforts will prompt Trump to make concessions in the coming weeks.

There are already signs that the US economy is losing momentum, partly due to uncertainty caused by Trump's unpredictable economic policies. A large number of business and household surveys show that consumers' confidence in the economic outlook has declined, and they are concerned that Trump's tariffs will lead to another rise in inflation.

Panicked investors sold stocks in large quantities within a month, causing the US stock market value to evaporate by nearly $5 trillion since mid February. This has also led to a continuous increase in safe haven buying of gold, continuously pushing up the price of gold.

In terms of economic data, the US Bureau of Statistics stated in a report on Tuesday that as of the end of February, the number of job vacancies in the United States had dropped to 7.568 million, while economists' expectations were 7.616 million. Investors are still waiting for Friday's non farm payroll report to find clues on the trajectory of the Federal Reserve's interest rate cuts.

The survey report released by the Institute for Supply Management (ISM) on Tuesday gave a pessimistic assessment of business operations, with manufacturers citing tariffs as a major factor. President Trump's wave of tariffs has weakened the confidence of businesses and consumers.

ISM reported that its manufacturing PMI fell from 50.3 in February to 49.0 last month. A PMI below 50 indicates a contraction in the manufacturing industry, which accounts for 10.2% of the total economy. The forward-looking new orders sub index of the ISM survey dropped from 48.6 in February to 45.2, the lowest value since May 2023.

On this trading day, the changes in ADP employment figures for March and the monthly rate of factory orders for February in the United States will also be released. Federal Reserve Governor Kugler will also give a speech, and investors need to pay attention. In addition, it is necessary to pay close attention to the details of the reciprocal tariffs and industry-specific tariffs announced by US President Trump, and be wary of the "boot landing" market.