[BENGALURU] Gold prices rose on Thursday (Apr 10) as investors turned to the safe-haven asset after US President Donald Trump escalated tariffs on China, the world’s top metal consumer, despite his decision to temporarily ease steep duties on several other countries.
Spot gold was up 0.2 per cent at US$3,089.17 an ounce, as at 0022 GMT. Bullion scaled to an all-time peak of US$3,167.57 on Apr 3. US gold futures rose 0.8 per cent to US$3,104.90.
In a stunning reversal, Trump on Wednesday decided to temporarily lower the hefty duties he had just imposed on dozens of countries while further ramping up pressure on China.
Trump said he would raise the tariff on Chinese imports to 125 per cent from the 104 per cent level, escalating a high-stakes confrontation between the world’s two largest economies. The two countries have traded tit-for-tat tariff hikes repeatedly over the past week.
Gold, traditionally seen as a hedge against economic and political uncertainty, often thrives in a low-interest-rate environment.
According to minutes from the Federal Reserve’s latest meeting, policymakers were nearly unanimous last month in warning that the US economy faced risks of higher inflation alongside slower growth, with some noting “difficult tradeoffs” may lie ahead.
Traders await the US Consumer Price Index data, due later in the day, and the Producer Price Index on Friday for crucial insights into the Fed’s rate trajectory.
Spot silver fell 0.5 per cent to US$30.89 an ounce, platinum lost 0.4 per cent to US$933.20 and palladium retreated 1 per cent to US$922.50. REUTERS
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