Gold eases on a stronger dollar; concerns loom over Trump's reciprocal tariff plans
Shafaq News/ Gold prices edged downon Wednesday as the U.S. dollar ticked up, while market participants braced forU.S.
President Donald Trump's sweepingreciprocal tariff plans, which they fear will fuel inflation and hindereconomic growth.
Spot gold eased 0.1% to $3,017.49 anounce as of 0535 GMT. U.S. gold futures fell 0.2% to $3,021.30.
U.S. dollar strength is pressuringprices, said Kelvin Wong, senior market analyst, Asia Pacific, at OANDA, addingthat "prices are now trapped in a sideways range due to uncertainty on howthe planned 2 April U.S. reciprocal tariffs are going to be implemented."
Trump's tariff policies are likelyto be inflationary, potentially slowing economic growth and intensifying tradetensions.
"There are real concerns aroundU.S. economic growth and as well as inflation. U.S. is likely to face astagflationary scenario, and that could support prices," said Soni Kumari,a commodity strategist at ANZ.
U.S. consumer confidence plunged tothe lowest in more than four years in March, with households fearing arecession and higher inflation triggered by tariffs.
Gold, a hedge against geopoliticaland economic instabilities, has risen 15% so far this year, scaling an all-timepeak of $3,057.21 on March 20.
Several Federal Reserve officialsare due to speak later in the day. Markets await U.S. personal consumptionexpenditures data on Friday for clues on monetary policy.
"We are forecasting $3,200 bySeptember," ANZ's Kumari said, adding that any hawkish comment from theFed could be a factor slowing gold's rally.
Elsewhere, the U.S. on Tuesdayreached deals with Ukraine and Russia to pause their attacks at sea and againstenergy targets, with Washington agreeing to push to lift some sanctions againstMoscow.
Spot silver fell 0.5% to $33.57 anounce and platinum lost 0.5% to $971.35. Palladium slipped 0.5% to $951.23.
(REUTERS)
