Gold Prices Steady amid Trade War Fears
Gold prices remained stable on Friday, February 14, 2025, as the precious metal is poised to secure gains for the seventh consecutive week. This stability comes amidst rising concerns over a possible global trade war triggered by U.S. President Donald Trump’s proposals to impose tariffs on nations that levy customs duties on American imports.
In the latest trading session, gold was priced at $2,929.02 per ounce, inching closer to its recent high of $2,942.70 recorded earlier this week. U.S. gold futures experienced a slight increase of 0.4%, reaching $2,957.50.
President Trump has directed his economic team to formulate plans to impose tariffs on countries imposing fees on U.S. imports, with China, Japan, South Korea, and the European Union among the primary targets.
The recent session revealed a notable rise in the U.S. Producer Price Index (PPI) for January, following an inflation report released on Wednesday. This report indicated that consumer prices surged at the fastest rate in nearly a year and a half. The PPI data suggests a resurgence in inflation, reinforcing market expectations that the Federal Reserve is unlikely to cut interest rates before the second half of 2025.
During his recent testimony before Congress, Federal Reserve Chair Jerome Powell affirmed that the central bank is not hastening toward interest rate reductions.
Gold is traditionally viewed as a safe haven asset during periods of inflation and economic uncertainty; however, its appeal diminishes in a high-interest-rate environment due to the absence of yield.
In other precious metals, silver saw a slight decline of 0.1%, settling at $32.32 per ounce. Conversely, platinum increased by 0.1% to $996.35, while palladium registered a decrease of 0.3%, pricing at $991.26.
Market Overview of Precious Metals:
| Metal | Price (per ounce) | Change (%) |
|---|---|---|
| Gold | $2,929.02 | 0.00 |
| Silver | $32.32 | -0.10 |
| Platinum | $996.35 | +0.10 |
| Palladium | $991.26 | -0.30 |
This emerging scenario highlights the complexities facing investors as they navigate through evolving economic indicators and geopolitical risks.
