Gold Prices Surge Amid US Customs Duties and Inflation Trends

Gold Prices Experience Mild Uptick Amidst Inflation Concerns

On Thursday, gold prices saw a modest increase as uncertainty surrounding ongoing customs duties bolstered demand for the precious metal. This uptick was further supported by a lower-than-anticipated inflation report from the United States, which has led to heightened expectations for potential interest rate reductions.

In immediate trading, gold rose by 0.4%, reaching $2,943.66 per ounce at 03:00 GMT, while U.S. gold futures increased by 0.2% to $2,951.90.

Edward Mayer commented, “I believe the next logical target for gold is $3,000 per ounce, and we are likely to see this in the coming months.” He noted that while the Consumer Price Index (CPI) was encouraging, the impact of customs fees has not yet fully materialized in the inflation data.

Despite the CPI showing a rise that was less than expected in the previous month, Mayer cautioned that this improvement may only be temporary against the backdrop of import tariffs expected to drive up costs for numerous commodities in the future.

The ongoing inflation situation presents a significant consideration for the U.S. Federal Reserve as it contemplates potential interest rate cuts. Lower interest rates typically support gold as a non-yielding asset, enhancing its appeal to investors.

The customs duties enacted during the Trump administration are anticipated to exacerbate inflation and contribute to economic uncertainty, with gold recently reaching a benchmark price of $2,956.15 on February 24.

Investors are currently awaiting data from the U.S. Producer Price Index (PPI), set to be released later today, which will provide additional insights into the monetary policy direction of the Federal Reserve.

In related market movements, immediate transactions for platinum increased by 0.1% to $33.26 per ounce, while platinum rose 0.4% to $987.90, and palladium gained 0.9%, reaching $957.60.