Gold Prices Hold Steady Amid Trade War Concerns
In early Thursday trading, gold prices experienced a slight uptick, remaining close to record levels as worries persist regarding the tariff strategies enacted by President Donald Trump. These measures could fuel inflation and potentially escalate tensions in global trade.
As of 0027 GMT, gold saw a 0.2 percent increase in spot transactions, reaching $2,938.57 per ounce. This comes on the heels of a record high achieved just a day prior, with prices soaring to $2,946.85. Additionally, US gold futures climbed 0.7 percent, trading at $2,955.20.
Earlier this month, Trump instituted tariffs of ten percent on Chinese imports and 25 percent on steel and aluminum. Recently, he has indicated plans to impose tariffs reaching 25 percent on automobiles, along with similar duties on semiconductor imports and pharmaceuticals.
A recent report from the Federal Reserve’s latest policy meeting highlighted concerns stemming from Trump’s initial tariff actions, which have heightened inflation fears. This uncertainty has prompted a continued pause in the Fed’s rate cuts. The central bank’s last meeting confirmed that interest rates would remain unchanged in the range of 4.25 percent to 4.50 percent. Officials have indicated there is no urgency to adjust rates further until there is clearer evidence of inflation declining towards the targeted rate of two percent.
Gold has long been viewed as a safeguard against inflation and geopolitical instability. However, elevated interest rates can diminish the appeal of non-yielding assets like gold.
Other Precious Metals Performance
In terms of other precious metals, silver remained stable in spot transactions at $32.71 per ounce. Conversely, platinum prices decreased by 0.2 percent to $969.70, while palladium settled at $968.38.
| Metal | Price per Ounce | Change |
|---|---|---|
| Gold | $2,938.57 | +0.2% |
| Silver | $32.71 | 0.0% |
| Platinum | $969.70 | -0.2% |
| Palladium | $968.38 | 0.0% |
As gold maintains its position amid mounting economic pressures, investors and market analysts will continue to monitor developments in trade policies and their implications for inflation and monetary policy.
