GOLD eased on Wednesday (Feb 12), after hitting an all-time high in the previous session on global trade war fears triggered by US President Donald Trump’s new tariffs, as the market’s focus shifted to a key US inflation report.
Spot gold fell 0.1 per cent at US$2,895.23 per ounce, as at 0033 GMT, after climbing a peak of US$2,942.70 on Tuesday.
US gold futures eased 0.3 per cent to US$2,923.40.
Mexico, Canada and the European Union on Tuesday condemned Trump’s decision to impose tariffs on all steel and aluminium imports next month, which fanned fears of a trade war as investors braced for yet more trade duty announcements.
US Federal Reserve chair Jerome Powell said the economy is in a good place and the Fed is not rushing to cut interest rates further, but is prepared to do it if inflation drops or the job market weakens.
Bullion is considered a hedge against inflation, but higher interest rates dampen the non-yielding asset’s appeal.
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Investors now await US consumer price index data due at 1330 GMT and producer price index data on Thursday.
Federal Reserve chair Jerome Powell is also due to testify before Congress later in the day.
Elsewhere, gold leasing rates in India have doubled within a month to a record high, following the overseas market, where rates jumped due to a supply crunch as global banks divert the precious metal to the United States, industry officials said.
Spot silver fell 0.1 per cent to US$31.78 per ounce, while platinum gained 0.1 per cent to US$984.50 and palladium firmed 0.3 per cent to US$978.77. REUTERS
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