Economy Update – Baghdad
Gold prices saw a modest increase on Thursday as market participants closely monitor developments surrounding U.S. President Donald Trump’s customs duty initiatives, which have the potential to escalate into a global trade conflict.
In immediate trading, gold advanced 0.2 percent, reaching $ 2,908.50 per ounce by 02:40 GMT. The precious metal had previously peaked at $ 2,942.70 on Tuesday.
Gold futures in the U.S. also increased, climbing 0.3 percent to $ 2,936.50.
President Trump announced his intention to enforce reciprocal customs tariffs starting Wednesday evening on any nation that imposes duties on American imports, raising concerns about the potential expansion of a global trade war and its implications for U.S. inflationary pressures.
The U.S. consumer price index experienced a greater-than-anticipated surge in January, reinforcing the Federal Reserve’s stance that it is not inclined to expedite interest rate reductions amidst growing economic uncertainties.
Gold typically serves as an inflation hedge; however, elevated interest rates can diminish the appeal of non-yielding assets.
Silver prices rose by 0.2 percent in immediate transactions, reaching $ 32.29 an ounce. Platinum also increased by 0.2 percent to $ 994.75, while palladium saw a 0.5 percent rise to $ 978.46.
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