Gold Prices Stabilize Amid Trade and Inflation Concerns
Gold prices showed stability on Thursday, hovering close to significant levels as concerns over potential trade tariffs proposed by U.S. President Donald Trump intensified fears of high inflation and an escalating global trade conflict.
As of 02:35 GMT, gold experienced a 0.2 percent increase in spot transactions, reaching $2,937.74 per ounce, just shy of the all-time high of $2,946.85 recorded the previous day. Meanwhile, U.S. gold futures rose by 0.7 percent to settle at $2,955.90.
Tim Water, a commodity market analyst, noted that prevailing expectations regarding global trade and inflation are favorable for gold, indicating that the price could soon reach the $3,000 mark.
Since taking office, President Trump has enacted a 10% tariff on Chinese imports, alongside 25% tariffs on steel and aluminum. He announced plans to introduce additional tariffs on various products, including lumber, automobiles, semiconductors, and pharmaceuticals, in the coming month.
The minutes from the Federal Reserve’s most recent monetary policy meeting indicated that Trump’s initial tariff proposals have heightened concerns over potential inflation, thus reinforcing the expectation of maintaining a cautious approach to interest rates.
Market participants are anticipating that the Federal Reserve may lower interest rates by 38 basis points by December. Gold is regarded as a hedge against geopolitical risks and inflation; however, elevated interest rates tend to diminish the appeal of non-yielding assets like gold.
Silver prices also saw an uptick, with spot transactions rising 0.1 percent to $32.75 per ounce. Additionally, platinum settled at $971.90, while palladium rose 0.1 percent, reaching $968.94 per ounce.
| Metal | Price (USD per ounce) | Change (%) |
|---|---|---|
| Gold | $2,937.74 | +0.2 |
| Silver | $32.75 | +0.1 |
| Platinum | $971.90 | 0.0 |
| Palladium | $968.94 | +0.1 |
