BENGALURU- Gold held steady near a record high on Tuesday, underpinned by safe-haven demand on concerns that US 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, about $6 shy of the all-time high of $2,956.15 scaled on Monday. US gold futures gained 0.1 percent 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 US ahead of a March 4 deadline.
Meanwhile, investors and economists expect the US Federal Reserve to respond “strongly and systematically” to changes in inflation and the labor market.
“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.
