Gold prices rose on Wednesday after hitting a one-week low in the previous session, as increasing doubts about U.S. President Donald Trump's tariff plans reduced investor risk appetite, boosting demand for gold as a safe haven.
اضافة اعلان
Spot gold rose by 0.1% to $2,916.84 per ounce by 0513 GMT, after falling more than 2% on Tuesday. U.S. gold futures also gained 0.4% to $2,930.30.
On Tuesday, Trump opened a new front in his battle against global trade rules by ordering an investigation into the possibility of imposing new tariffs on copper imports, in an effort to boost U.S. production of this key metal used in electric vehicles, military equipment, power grids, and various consumer goods.
Kelvin Wong, senior market analyst at OANDA for the Asia-Pacific region, said: "The tariff concerns that weaken U.S. consumer confidence are supporting gold prices."
Investor concerns were further exacerbated by the release of U.S. consumer confidence data, which dropped at the fastest pace in three and a half years in February, while 12-month inflation expectations jumped.
Tom Barkin, president of the Federal Reserve Bank of Richmond, stated, "It is difficult to make significant changes in monetary policy amid this level of uncertainty."
With inflation rising, the Federal Reserve may be forced to keep interest rates high, which could reduce gold's appeal as a non-yielding asset.
Fears of a global trade war escalation due to Trump's policies have pushed gold to record highs multiple times, contributing to its rise of about 11% this year.
Investors are awaiting the release of the U.S. Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation gauge, due on Friday.
Tim Waterer, senior market analyst at KCM Trade, said, "If the numbers show that inflation is continuing to rise, expectations for a rate cut by the Fed may be scaled back."
Spot silver rose 0.1% to $31.76 per ounce. Platinum fell by 0.2% to $964.80, while palladium rose by 0.7% to $934.40. – Agencies
