BENGALURU- Gold prices held firm near a record high on Thursday, as US President Donald Trump’s tariff plans stoked fears of higher inflation and a major global trade war.
Spot gold rose 0.2 percent to $2,937.74 an ounce, trading near the all-time high of $2,946.85 hit on Wednesday. US gold futures gained 0.7 percent to $2,955.90.
“Uncertain outlooks for both global trade and inflation are proving to be conducive for gold and are acting to bring the $3,000 level within range,” said Tim Waterer, chief market analyst at KCM Trade.
Since his inauguration, Trump has imposed a 10 percent tariff on Chinese imports and a 25 percent tariff on steel and aluminum. He said on Wednesday he would announce tariffs related to lumber, cars, semiconductors and pharmaceuticals “over the next month or sooner.”
Minutes of the Federal Reserve’s last policy meeting showed on Wednesday that Trump’s initial policy proposals raised concerns about higher inflation and affirmed a continued pause on rate cuts.
Traders currently see the Fed delivering 38 basis points of rate cuts by December, according to LSEG data.
