Gold rises as US tariff uncertainty lifts safe-haven demand
Markets currently expect three 25-basis-point rate cuts this year, according to CME’s FedWatch Tool
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[BENGALURU] Gold prices climbed on Wednesday (Feb 25), as investors flocked to the safe-haven metal during Asian trading, weighing uncertainty over US tariffs after the US Supreme Court struck down a swathe of measures from US President Donald Trump.
Spot gold was up 0.5 per cent at US$5,174.76 per ounce, as at 9.59 am. Bullion ended the previous session down more than 1 per cent as investors locked in profits after gold hit a three-week high earlier in the day.
US gold futures for April delivery were up 0.3 per cent at US$5,192.20.
“The return of the Chinese market, along with increased policy uncertainty in the United States are maintaining the appeal of gold and to an extent silver as well,” said Kyle Rodda, senior market analyst at Capital.com.
The United States began collecting a temporary new 10 per cent global import tariff on Tuesday, but Washington was working to increase it to 15 per cent, a White House official said, sowing confusion over Trump’s tariff policies after the Supreme Court defeat last week.
Meanwhile, two US Federal Reserve officials signalled no near-term appetite to change the setting of central bank interest rate policy.
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Markets currently expect three 25-basis-point rate cuts this year, according to CME’s FedWatch Tool.
“There’s still ample room for further upside for gold here, especially if all the things driving gold prices higher, such as US fiscal trade, foreign policy, continue to persist,” Rodda added.
Gold may stabilise around a support of US$5,140 per ounce, and retest the resistance at US$5,244, Reuters technical analyst Wang Tao said, adding that the immediate resistance is at US$5,205, a break above may lead to a gain into the US$5,221 to US$5,244 range.
In geopolitics, Iran and the US are set to hold a third round of nuclear talks on Thursday in Geneva, Oman’s Foreign Minister Badr Albusaidi said.
Spot silver rose 1 per cent to US$88.23 per ounce, after hitting a more than two-week high on Monday.
Spot platinum climbed 2.1 per cent to US$2,212.72 per ounce, while palladium added 1.4 per cent to US$1,793.68. REUTERS
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