GOLD prices were little changed on Friday (Feb 21) but remained on track for an eighth successive weekly gain, driven by concerns over US President Donald Trump’s tariff plans, which could spark trade wars and stoke inflation.
Spot gold was up 0.1 per cent to US$2,941.25 an ounce, as at 0018 GMT. Bullion rose about 2 per cent so far this week and scaled an all-time high of US$2,954.69 on Thursday.
US gold futures were steady at US$2,956.60.
Federal Reserve officials are taking note of what they see as rising inflation risks and the uncertain impact of Trump’s trade, immigration and other policies.
“Going forward, I consider it is appropriate to hold the federal funds rate in place for some time, given the balance of risks that we face right now,” Federal Reserve governor Adriana Kugler said on Thursday.
Bullion is seen as a safeguard against geopolitical risks and inflation, but higher interest rates dampen the non-yielding asset’s appeal.
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Earlier this week, Trump said he will announce fresh tariffs over the next month or sooner, adding lumber and forest products to previously announced plans to impose duties on imported cars, semiconductors and pharmaceuticals.
Since taking office on Jan 20, Trump has imposed an additional 10 per cent tariff on Chinese imports and a 25 per cent tariff on steel and aluminium.
Meanwhile, gold exports from Switzerland rose year on year in January as supplies to the US soared to the highest in at least 13 years and offset lower deliveries to top consumers China and India, Swiss customs data showed on Thursday.
Spot silver was steady at US$32.93 an ounce. Platinum fell 0.2 per cent to US$976.42, and palladium firmed 0.4 per cent to US$981.29. REUTERS
