[BENGALURU] Gold prices held steady on Wednesday (Mar 26) as market participants squared positions ahead of US President Donald Trump’s sweeping reciprocal tariff plans, which they fear will fuel inflation and hinder economic growth.
Spot gold held ground at US$3,020.87 an ounce as at 0026 GMT. US gold futures was unchanged at US$3,025.10.
US consumer confidence plunged to the lowest in more than four years in March, with households fearing a recession in the future and higher inflation triggered by tariffs.
The spotlight is now on potential reciprocal tariffs that the US administration might adopt on Apr 2, causing some nervousness in the market.
Trump’s tariff policies are likely to be inflationary, potentially slowing economic growth and intensifying trade tensions.
Gold, traditionally seen as a hedge against geopolitical and economic uncertainties, has risen 15 per cent so far this year, scaling an all-time peak of US$3,057.21 on Mar 20.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Several Federal Reserve officials are due to speak later in the day, offering more insights into this year’s monetary policy as uncertainty looms over tariffs.
Markets are awaiting the US personal consumption expenditures data on Friday for clues on the Fed’s next moves.
On the geopolitical front, the United States on Tuesday reached deals with Ukraine and Russia to pause their attacks at sea and against energy targets, with Washington agreeing to push to lift some sanctions against Moscow.
Spot silver fell 0.3 per cent to US$33.65 an ounce and platinum eased 0.1 per cent to US$975.96. Palladium was steady at US$956.12. REUTERS
Share with us your feedback on BT’s products and services
