Gold prices rise on Thursday as concerns over tariffs and economic uncertainty fueled demand for the precious metal. Additionally, weaker-than-expected U.S. inflation data strengthened expectations of interest rate cuts, providing further support for gold.
Recent U.S. Consumer Price Index (CPI) data revealed a smaller-than-anticipated increase in inflation. Although this may be temporary, it has raised hopes that the Federal Reserve will consider cutting interest rates. Lower inflation typically gives central banks more room to ease monetary policy, which benefits non-yielding assets like gold.
Ongoing trade tensions have also played a crucial role in gold’s prices rise. Earlier this month, the U.S. government increased tariffs on Chinese imports to 20%, while also imposing a 25% duty on goods from Canada and Mexico. However, some exemptions were granted under the U.S.-Mexico-Canada Agreement. Additionally, the White House recently rolled back plans to double tariffs on Canadian steel and aluminum, adding to market uncertainty.
As economic and political risks rise, investors often turn to gold as a hedge. The recent market volatility has pushed gold prices rise to record highs, with bullion reaching $2,956.15 per ounce on February 24. Investors now await further inflation data, such as the U.S. Producer Price Index (PPI), which could provide more clues about future Federal Reserve policy decisions.
As of 0050 GMT, spot gold was trading at $2,938.24 per ounce, reflecting a 0.2% increase. U.S. gold futures remained steady at $2,945.70 per ounce. Other precious metals also saw gains, with silver rising 0.2% to $33.29 per ounce, platinum adding 0.2% to $985.18, and palladium climbing 0.6% to $954.63.
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Gold prices rise as investors seek safe-haven assets amid inflation concerns and tariff uncertainty. Find out how market trends impact gold.
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