Gold prices edged higher on Thursday as uncertainty over tariffs persisted, boosting demand for the safe-haven asset, while cooler-than-expected U.S. inflation also supported bullion by reinforcing expectations of a rate cut.
Spot gold was up 0.2% at $2,936.31 an ounce, by 0715 GMT, while U.S. gold futures were steady at $2,946.00.
"The CPI data is encouraging but I suspect that the tariff hikes are not yet reflected in the inflation data."
Data showed that the U.S. consumer price index rose less than expected last month, but the increase was likely temporary against a backdrop of aggressive tariffs on imports that are expected to raise the cost of most goods in the coming months.
Lower inflation gives the U.S. Federal Reserve more room to cut interest rates, and non-yielding gold thrives in low-interest-rate settings.
Trump earlier this month triggered a trade war, raising tariffs on Chinese goods to 20% and imposing new duties of 25% on imports from Canada and Mexico.
He later eased them and granted a one-month exemption for any goods that meet the rules of origin under the U.S.-Mexico-Canada Trade Agreement.
Trump also changed course on Tuesday afternoon, vowing to double tariffs on steel and aluminum from Canada to 50%, hours after announcing the higher tariffs.
Trump's tariffs are widely expected to stoke inflation and economic uncertainty, and have pushed safe-haven gold to a record high of $2,956.15 on Feb. 24.
Investors are now looking ahead to U.S. Producer Price Index (PPI) data due later in the day for further insight into the Fed's monetary policy. Spot silver fell 0.5% to $33.05 an ounce, platinum fell 0.7% to $977.25, while palladium was unchanged at $948.55. (Newsmaker23)
Source: Reuters
