Economic Update
Gold prices experienced a slight uptick today, Wednesday, following a drop to their lowest level in a week during the previous trading session. This increase is attributed to the prevailing uncertainty surrounding US President Donald Trump’s proposed customs duties, which has dampened risk appetite and fueled demand for gold as a safe-haven asset.
In immediate trading, gold rose 0.1% to $2,918.01 an ounce by 02:37 GMT, recovering from a more than 2% decline on Tuesday.
Meanwhile, gold futures in the United States increased by 0.5% to $2,932.50.
On Tuesday, Trump intensified his critique of global trade norms by initiating an investigation into potential customs duties on copper imports, aiming to bolster domestic production of this essential metal used in electric vehicles, military equipment, power infrastructure, and a wide range of consumer products.
Concerns regarding these customs duties, which may erode consumer confidence in the US economy, ultimately support gold prices.
This trend is underscored by the significant decline in US consumer confidence, which has fallen at the fastest rate in three and a half years as of February, while inflation expectations for the upcoming year have risen.
High inflation may compel the Federal Reserve to maintain elevated interest rates, which typically diminishes the allure of non-yielding gold.
Meanwhile, silver prices held steady in instant transactions at $31.74 an ounce, platinum decreased by 0.3% to $964.00, and palladium saw a modest increase of 0.3% to $930.73.
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