Gold settles 3% higher after early rally fades on Trump tariff comments

Gold bars

Gold prices pared early gains on Wednesday after US President Donald Trump announced a temporary suspension of tariffs on all countries except China.

June gold futures jumped 3%, or $89.20, to settle at $3,079.4 an ounce after hitting an intraday high of $3,117.1.

The US dollar index, which tracks the greenback against a basket of six major currencies, was little changed at 102.98 at 9:53 p.m. Mecca time.

Prices had surged earlier in the session after China imposed retaliatory tariffs of 84% on US-made goods, effective April 10.

Following Trump's 90-day suspension of higher tariffs on most countries, Goldman Sachs analysts said they now expect the Federal Reserve to deliver three consecutive 25-basis-point interest rate cuts in June, July, and September, returning to their previous base-case scenario.