Economy News – Baghdad
Gold prices experienced slight fluctuations during early trading on Wednesday, driven by ongoing uncertainties surrounding U.S. tariffs and, subsequently, an increased demand for safe-haven assets. Market participants are keenly awaiting the Federal Reserve’s policy meeting, which is set to conclude later today.
In current transactions, gold was trading at $2,765.35 per ounce as of 0108 GMT, while U.S. gold futures saw a modest uptick of 0.2 percent, reaching $2,772.10.
Earlier on Monday, gold prices fell more than one percent, marking its most significant drop since December 18. This decline followed the launch of the Chinese Dibsic application, which employs artificial intelligence and was developed at a low cost. The steep losses in global equity markets in the preceding session contributed to increased risk aversion across various asset classes.
In a statement issued on Monday, U.S. President Donald Trump announced impending tariffs on aluminum, copper, and steel.
Typically, gold serves as a safe haven during periods of uncertainty and trade disputes.
However, Trump’s policies are perceived as inflationary, which could compel the Federal Reserve to maintain elevated interest rates for an extended duration, thereby diminishing gold’s appeal as a hedge against inflation.
Market attention is currently fixated on the initial Federal Reserve policy meeting of the year, as Chinese markets remain closed in observance of the Lunar New Year.
The Federal Reserve initiated its two-day meeting on Tuesday, during which it is expected to keep interest rates steady, following a cumulative reduction of 100 basis points from September to December.
Regarding other precious metals, silver saw a slight decline of 0.1 percent, trading at $30.43 per ounce. Palladium dropped by 0.3 percent to $952, while platinum also fell by 0.2 percent to $940.10.
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