[BENGALURU] Gold edged higher on Monday (Mar 24) as concerns over US President Donald Trump’s impending reciprocal tariffs and the potential for interest rate cuts by the Federal Reserve this year supported bullion’s safe-haven appeal.
Spot gold was up 0.1 per cent at US$3,025.12 an ounce, as at 0005 GMT. US gold futures rose 0.3 per cent to US$3,030.70.
Gold reached a record high of US$3,057.21 per ounce last Thursday as trade tensions fuelled safe-haven demand. Zero-yield bullion is seen as a hedge against geopolitical turmoil, economic uncertainties, and inflation.
Tariffs will remain in the spotlight as Trump announced a wave of reciprocal tariffs to take effect on Apr 2, which is likely to fuel inflation and hinder economic growth.
Last week, the Fed held its benchmark rate steady in the 4.25 to 4.5 per cent range, as expected. Policymakers see the US central bank delivering two quarter-percentage-point cuts by the year-end.
However, New York Federal Reserve president John Williams said on Friday the US central bank’s monetary policy is in the right place given the myriad uncertainties facing the economy, noting that there’s no urgency to make any changes to interest rates.
On physical front, discounts offered on gold in India touched a more than eight-month high last week as demand slumped after spot prices surged past record highs.
Spot silver gained 0.1 per cent to US$33.06 an ounce, platinum firmed 0.7 per cent to US$981.25 and palladium rose 0.5 per cent to US$962.54. REUTERS
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