Gold gains on Trump tariff worries; US inflation data in focus

GOLD prices edged higher on Thursday (Feb 27) as concerns persisted over US President Donald Trump’s tariff plans, while investors awaited a key inflation report to assess the Federal Reserve’s policy path.

Spot gold was up 0.1 per cent at US$2,918.22 an ounce, as at 0018 GMT.

US gold futures rose 0.1 per cent to US$2,932.30.

Trump on Wednesday raised hopes for another month-long pause on steep new tariffs on imports from Mexico and Canada, saying they could take effect on Apr 2, and floated a 25 per cent “reciprocal” tariff on European cars and other goods.

Since taking office on Jan 20, Trump has imposed an additional 10 per cent tariff on Chinese imports and 25 per cent duties on steel and aluminium.

Several Federal Reserve officials are due to speak later in the day for more insights on monetary-policy easing this year amid Trump tariffs uncertainty.

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Markets will next look to the personal consumption expenditures (PCE) index, the Fed’s preferred inflation measure, due on Friday, for further confirmation of the central bank’s rate path.

The consensus forecast was for a PCE monthly index of 0.3 per cent, unchanged from December, according to a Reuters poll, while the core number is seen rising 0.3 per cent, up from 0.2 per cent in December.

Bullion is seen as a safeguard against political risks and inflation, but higher interest rates dampen the non-yielding asset’s appeal.

Spot silver rose 0.1 per cent to US$31.87 an ounce, platinum fell 0.1 per cent to US$965.10 and palladium eased 0.1 per cent to US$925.95. REUTERS

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