Gold held steady near a record high on Tuesday, underpinned by safe-haven demand on concerns that U.S. President Donald Trump’s tariff plans could fuel inflation and trigger a major global trade war.
Spot gold was little changed at $2,950.39 an ounce, as of 0220 GMT, about $6 shy of the all-time high of $2,956.15 scaled on Monday. U.S. gold futures gained 0.1% to $2,967.40.
Market participants may be back to factor for tariff risks, as the extended deadline for Mexico and Canada tariffs approaches next week, IG market strategist Yeap Jun Rong said.
Trump said on Monday tariffs on Canadian and Mexican imports were “on time and on schedule” despite efforts by the countries to beef up border security and halt the flow of fentanyl into the U.S. ahead of a March 4 deadline.
Meanwhile, investors and economists expect the U.S. Federal Reserve to respond “strongly and systematically” to changes in inflation and the labour market.
Gold hits new record high on tariff worries
“This week’s lineup of Fed policymakers may deliver some hawkish rhetoric, but with market expectations already pricing in a prolonged rate hold over the next two meetings, the impact on gold prices may be more contained,” Yeap said.
Gold is considered a safe investment during economic and political uncertainties, and thrives in a low interest rate environment.
Investors await the U.S. Personal Consumption Expenditures report, the Fed’s preferred inflation gauge, for insights into the rate-cut path. The report is due on Friday.
Elsewhere, India’s gold imports are set to fall 85% in February from a year earlier to their lowest in two decades, with demand sapped by record bullion prices.
Spot silver climbed 0.3% to $32.45 an ounce. Platinum was flat at $966, and palladium was down 0.4% at $936.25.
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