Gold gains on Trump tariff worries; US inflation data in focus
Thu Feb 27 2025
Gold prices edged higher on Thursday as concerns persisted over U.S. President Donald Trump's tariff plans, while investors awaited a key inflation report to assess the Federal Reserve's policy path.
FUNDAMENTALS
* Spot gold was up 0.1% at $2,918.22 an ounce, as of 0018 GMT. * U.S. gold futures rose 0.1% to $2,932.30.
* Trump on Wednesday raised hopes for another month-long pause on steep new tariffs on imports from Mexico and Canada, saying they could take effect on April 2, and floated a 25% "reciprocal" tariff on European cars and other goods.
* Since taking office on January 20, Trump has imposed an additional 10% tariff on Chinese imports and 25% duties on steel and aluminium.
* Several Federal Reserve officials are due to speak later in the day for more insights on monetary-policy easing this year amid Trump tariffs uncertainty.
* Markets will next look to the Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation measure, due on Friday, for further confirmation of the central bank's rate path.
* The consensus forecast was for a PCE monthly index of 0.3%, unchanged from December, according to a Reuters poll, while the core number is seen rising 0.3%, up from 0.2% in December.
* Bullion is seen as a safeguard against political risks and inflation, but higher interest rates dampen the non-yielding asset's appeal.
* Spot silver rose 0.1% to $31.87 an ounce, platinum fell 0.1% to $965.10 and palladium eased 0.1% to $925.95.