Gold Prices Experience Modest Increase Amid Trade Policy Developments
Gold prices saw a slight uptick on Thursday as market participants scrutinized the implications of U.S. President Donald Trump’s recent proposals regarding customs duties, raising concerns about the potential escalation of a global trade conflict.
In immediate trading, gold climbed by 0.2 percent to $2,908.50 per ounce by 02:40 GMT. Earlier in the week, gold had reached a peak of $2,942.70 on Tuesday.
Simultaneously, gold futures in the United States increased by 0.3 percent, pricing at $2,936.50.
Trump has announced that he intends to apply mutual customs fees starting Wednesday evening on every nation that enforces tariffs on U.S. imports. This decision intensifies fears of a broader trade war and may lead to heightened inflationary pressures within the United States.
The U.S. consumer price index demonstrated stronger-than-expected growth in January, reinforcing the Federal Reserve’s stance that it is not in a rush to lower interest rates despite growing economic uncertainties.
Investors often turn to gold as a safeguard against inflation; however, elevated interest rates can diminish the appeal of non-yielding assets such as gold.
Furthermore, other precious metals also witnessed gains in immediate trading: silver rose by 0.2 percent to $32.29 per ounce, platinum increased by 0.2 percent to $994.75, and palladium saw a rise of 0.5 percent to $978.46.
| Metal | Price (per ounce) | Change (%) |
|---|---|---|
| Gold | $2,908.50 | +0.2 |
| Silver | $32.29 | +0.2 |
| Platinum | $994.75 | +0.2 |
| Palladium | $978.46 | +0.5 |
