Having touched a one-week low on Tuesday, Spot Gold bounced back above the $2,900 mark on Wednesday, as uncertainty surrounding US President Trump’s tariff policies continued to underpin safe haven demand.
Trump on Tuesday ordered a probe into potential new tariffs on copper imports in an attempt to rebuild US production of the metal.
Concerns that Trump’s tariff plans could lead to a global trade war have pushed Gold to fresh all-time highs.
“It’s hard to make significant monetary policy changes amid such uncertainty,” Richmond Federal Reserve President Tom Barkin was quoted as saying by Reuters.
Since many analysts believe Trump’s spectrum of policies may reignite inflation, the Federal Reserve may also be prompted to keep interest rates at higher levels. This, in turn, could restrain the non-yielding Gold’s upside.
Market players now awaited the key US PCE inflation figures on Friday for more guidance on the Fed’s monetary easing trajectory. A higher-than-anticipated reading may further rein in Fed rate cut expectations.
Spot Gold was last little changed on the day to trade at $2,914.75 per troy ounce.
Gold Futures for delivery in April were up 0.27% on the day to trade at $2,926.64 per troy ounce.
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