Gold prices went up slightly on Thursday as the markets followed news about U.S. President Donald Trump’s plans to impose tariffs. This could lead to a global trade war and raise inflation in the U.S. Investors are also waiting for important inflation data that is set to be released later.
As of 12:24 AM GMT, gold was priced at $2,905.12 per ounce, having dropped more than 1% after the U.S. consumer price index was published in the previous session. Gold reached an all-time high of $2,942.70 earlier this week. For U.S. gold futures, the price stayed steady at $2,929.60.
In January, the U.S. consumer price index went up more than expected which indicates that the Federal Reserve is not planning to reduce interest rates anytime soon. Federal Reserve Chair Jerome Powell mentioned that the fight against rising prices is not over and that further rate cuts will be on hold until it is clear that inflation is going to return to the Fed’s target of 2%.
Gold is often seen as a safe investment during inflation, but higher interest rates can make it less appealing. Trump stated that he would impose tariffs on countries that charge duties on U.S. goods, raising concerns about a potential trade war that may further increase inflation in the U.S.
Investors are also paying attention to the upcoming Producer Price Index (PPI) data set to be released, as it could offer more clues about future monetary policy.
Additionally, silver prices rose 0.1% to $32.26 per ounce, platinum prices remained steady at $992.32, and palladium prices increased by 0.2% to $975.48.
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