GOLD prices edged higher on Thursday (Feb 20), hovering near their all-time highs as concerns persisted over US President Donald Trump’s tariff strategies, which could fuel inflation and escalate a global trade war.
Spot gold rose 0.2 per cent to US$2,938.57 an ounce, as at 0027 GMT. Bullion scaled an all-time high of US$2,946.85 on Wednesday.
US gold futures gained 0.7 per cent to US$2,955.20.
Trump imposed a 10 per cent tariff on Chinese imports and a 25 per cent tariff on steel and aluminium earlier this month. Furthermore, he recently said he intends to impose auto tariffs “in the neighbourhood of 25 per cent”, along with similar duties on semiconductor and pharmaceutical imports.
Minutes of the latest Federal Reserve policy meeting on Wednesday showed that Trump’s initial policy proposals raised concern about higher inflation and affirmed a continued pause on rate cuts.
The Fed held its benchmark interest rate at 4.25 to 4.5 per cent range at its meeting last month, and officials have since said they are in no rush to cut rates again until they are more certain inflation will decline to the 2 per cent target.
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Traders currently see the Fed delivering 38 basis points worth of rate cuts by December, according to LSEG data.
Bullion is seen as a safeguard against geopolitical risks and inflation, but higher interest rates dampen the non-yielding asset’s appeal.
A slew of Fed officials are scheduled to speak later in the day, which could provide further insights on US central bank’s monetary policy.
Spot silver was steady at US$32.71 an ounce. Platinum fell 0.2 per cent to US$969.70, and palladium was steady at US$968.38. REUTERS
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