[BENGALURU] Gold prices edged higher on Thursday (Mar 13) as uncertainty over tariffs persisted, driving safe-haven demand, while a cooler-than-expected US inflation print also supported bullion by strengthening expectations of rate cuts.
Spot gold was up 0.2 per cent at US$2,938.24 an ounce, as at 0050 GMT, while US gold futures were steady at US$2,945.70.
Data showed that the US consumer price index increased less than expected last month, but the improvement is likely temporary against the backdrop of aggressive tariffs on imports that are expected to raise the cost of most goods in the months ahead.
Lower inflation leaves more room for the US Federal Reserve to cut interest rates, and non-yielding gold thrives in a low-interest rate setting.
Trump early this month triggered a trade war, increasing the tariffs on goods from China to 20 per cent and imposing a new 25 per cent duty on Canadian and Mexican imports, before dialling back and providing a one-month exemption for some goods that meet the rules of origin under the US-Mexico-Canada Agreement on trade.
Trump also reversed course on Tuesday afternoon on a pledge to double tariffs on steel and aluminium from Canada to 50 per cent, hours after announcing the higher tariffs.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Trump’s tariffs are widely expected to stoke inflation and economic uncertainty, and have prompted gold to reach a record high of US$2,956.15 on Feb 24.
Gold is seen as a hedge against political risks and inflation.
Investors now await US producer price index data due later in the day to gain further insights into the Fed’s monetary policy.
Spot silver rose 0.2 per cent to US$33.29 an ounce, platinum added 0.2 per cent to US$985.18, and palladium gained 0.6 per cent to US$954.63. REUTERS
Share with us your feedback on BT’s products and services
