In the global financial market, the trend of gold prices has always attracted much attention. Overnight, the gold market witnessed significant changes. The gold price rose by nearly $30, reaching a maximum of $2,922.09 per ounce and finally closing at $2,915.55 per ounce. Behind this volatility, the key factor is that US President Trump announced an expansion of the scope of steel and aluminum tariffs, for the first time including metal derivatives worth nearly $150 billion in the tax list. This measure not only puts pressure on industries and consumers in terms of cost increases but also has a profound impact on the global supply chain and trade relations, thus leading to a renewed rise in the safe-haven demand for gold in the market.

However, the upward momentum of gold bulls has been somewhat restrained. Ukraine and the United States issued a joint statement after talks in Saudi Arabia, in which Ukraine agreed to accept the US-proposed 30-day ceasefire in the Russia-Ukraine conflict. This situation has made gold bulls cautious because a reduction in geopolitical risks may reduce the market's safe-haven demand for gold.

Looking specifically at the content of Trump's tariff expansion, he doubled the import tax rate on Canadian steel and aluminum to 50%, while maintaining a 25% tax rate for other countries and canceling previous exemptions, exclusions, and quotas. These measures will come into effect on April 1. The new tariff list covers a wide range of imported products, including automotive and tractor parts, metal furniture, building materials, and machinery parts, with a total import value of $147.3 billion, of which nearly two-thirds are aluminum products and one-third are steel products.

This tariff measure has a huge impact on Canada and Mexico. As the largest sources of metal imports for the United States, they are already facing a 25% tariff on all products imposed by Trump to combat fentanyl trafficking. The new measures undoubtedly exacerbate the economic pressure on the two countries. Even though the goods subject to the origin rules of the United States-Mexico-Canada Agreement are temporarily exempt from tariffs, it is difficult to alleviate the overall pressure.

The industry has reacted strongly to this. Equipment manufacturers in Wisconsin said that the new tariffs will only increase costs because most of the supply of small metal parts has been transferred overseas, and some manufacturers are considering price increases. The government relations director of the Association of Equipment Manufacturers also pointed out that the tariffs may drive up domestic steel prices, and agricultural machinery equipment manufacturers may announce price increases within one or two weeks.

Whether Trump's tariff policy can bring metal processing back to the United States or whether it will reduce the global competitiveness of US manufacturers remains uncertain. Since the announcement of the tariff revision, the futures price of hot-rolled steel in the US Midwest has increased by more than 21%, rising by $166 per ton to $925.

The White House refused to comment on the possible cost increases caused by the tariffs, saying that this is an extension of the "America First" economic agenda during Trump's first term, aiming to rebuild the US industrial base, reduce taxes, and increase energy production. A White House spokesman said that President Trump will use tariffs to create a fair playing field for American workers and revitalize the US industrial strength. However, the White House announced on the 11th that the additional 25% tariff on steel and aluminum imports from Canada will not take effect because Doug Ford, the premier of Ontario, Canada, has abandoned the 25% surcharge on electricity exports to three US states. But starting at midnight on March 12, the 25% steel and aluminum tariffs on all trading partners officially came into effect, with no exceptions or exemptions.

In terms of the Russia-Ukraine situation, Ukraine agreed to the ceasefire proposal, and the United States will resume military aid and intelligence sharing with it. US Secretary of State Rubio submitted the plan to Russia. Russian President Putin said he is willing to discuss a peace agreement but ruled out the possibility of territorial concessions and demanded that Ukraine withdraw completely from the four disputed regions. It is reported that Putin will have a dialogue with Trump on Friday, and this dialogue has attracted much attention.

Overall, Trump's expansion of the metal tariff scope may intensify global trade tensions and support the rise of gold prices. If the ceasefire proposal progresses, it may reduce geopolitical risks and put pressure on gold prices. The trends of the US dollar and inflation expectations are also key factors affecting gold prices. A MarketPulse by OANDA market analyst pointed out that when market uncertainties persist, gold may be supported, but positive progress in Russia-Ukraine negotiations may reduce the risk premium. The market will next focus on the US Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday. According to a Reuters survey, the consumer price index for February is expected to rise by 0.3%, and traders expect the Federal Reserve to cut interest rates in June.