Gold prices edged higher on Thursday, hovering near their all-time highs as concerns persisted over U.S. President Donald Trump’s tariff strategies, which could fuel inflation and escalate a global trade war. FUNDAMENTALS
* Spot gold rose 0.2% to $2,938.57 an ounce, as of 0027 GMT. Bullion scaled an all-time high of $2,946.85 on Wednesday.
* U.S. gold futures gained 0.7% to $2,955.20.
* Trump imposed a 10% tariff on Chinese imports and a 25% tariff on steel and aluminium earlier this month. Furthermore, he recently said he intends to impose auto tariffs “in the neighborhood of 25%”, along with similar duties on semiconductor and pharmaceutical imports.
* Minutes of the latest Federal Reserve policy meeting on Wednesday showed that Trump’s initial policy proposals raised concern about higher inflation and affirmed a continued pause on rate cuts.
* The Fed held its benchmark interest rate at 4.25%-4.50% range at its meeting last month, and officials have since said they are in no rush to cut rates again until they are more certain inflation will decline to the 2% target. * Traders currently see the Fed delivering 38 basis points worth of rate cuts by December, according to LSEG data. * Bullion is seen as a safeguard against geopolitical risks and inflation, but higher interest rates dampen the non-yielding asset’s appeal.
* A slew of Fed officials are scheduled to speak later in the day, which could provide further insights on U.S. central bank’s monetary policy.
* Spot silver was steady at $32.71 an ounce. Platinum fell 0.2% to $969.70, and palladium was steady at$968.38. DATA/EVENTS (GMT) 0100 China Loan Prime Rate 1Y, Loan Prime Rate 5Y Feb 1330 US Initial Jobless Clm 15 Feb, w/e 1330 US Philly Fed Business Indx Feb 1500 EU Consumer Confid. Flash Feb 1530 US EIA-Nat Gas Chg Bcf, Nat Gas-EIA Implied Flow 14 Feb.