Markets will be scanning the US personal consumption expenditures data due on Friday, which could shed more light on the US interest rate path
[BENGALURU] Gold gained on Thursday (Mar 27) as concerns grew over US President Donald Trump’s plans to impose reciprocal tariffs next week, following a 25 per cent tariff pressed on imported cars and light trucks that ratcheted up global trade.
Spot gold rose 0.1 per cent to US$3,022.69 an ounce as at 0026 GMT. US gold futures firmed 0.2 per cent to US$3,026.70.
Trump on Wednesday unveiled a 25 per cent tariff on imported cars and light trucks starting next week, widening the global trade war.
Investors feared that Trump’s reciprocal tariffs, expected to take effect on Apr 2, might fuel inflation, slow economic growth and heighten trade tensions.
Concerns over Trump’s tariff policies have catapulted gold to a record high of US$3,057.21 on Mar 20.
Minneapolis Federal Reserve Bank president Neel Kashkari said that while the US central bank has made a lot of progress in bringing inflation down. “We have more work to do” to get inflation to the Fed’s 2 per cent target.
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Last week, the central bank held the benchmark interest rate steady but indicated it could cut rates later this year. Non-yielding bullion tends to thrive in a low-interest-rate environment.
Markets will be scanning the US personal consumption expenditures data due on Friday, which could shed more light on the US interest rate path.
Meanwhile, Goldman Sachs on Wednesday raised its end-2025 gold price forecast to US$3,300 per ounce from US$3,100, citing stronger-than-expected ETF inflows and sustained central bank demand.
Spot silver fell 0.1 per cent to US$33.69 an ounce, platinum eased 0.1 per cent to US$973.43 and palladium lost 0.5 per cent to US$963.05. REUTERS
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