Gold little changed; investors await US payrolls data
GOLD prices were little changed on Thursday (Mar 6), as investors awaited US non-farm payrolls data to assess the Federal Reserve’s interest rate trajectory amid growing trade tensions between the US and its trading partners.
Spot gold was steady at US$2,917.90 an ounce as at 0021 GMT, while US gold futures edged up 0.1 per cent to US$2,927.40.
US President Donald Trump will exempt automakers from his punishing 25 per cent tariffs on Canada and Mexico for a month as long as they comply with an existing free trade agreement, the White House said on Wednesday.
Trump’s tariffs have strained relations with Canada, Mexico, and China. Canada and China have hit back with tariffs of their own on selected US imports, while Mexico has vowed to retaliate as well.
Worries over Trump’s tariff policies have pushed safe-haven gold to hit a record high at US$2,956.15 on Feb 24.
US services sector growth unexpectedly picked up in February and prices for inputs increased, which combined with a recent surge in the cost of raw materials at factories suggested that inflation could heat up in the months ahead.
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Gold is seen as a hedge against political risks and inflation but higher interest rates dampen the non-yielding asset’s appeal.
The market now awaits non-farm payrolls report on Friday for more cues on the Fed’s policy path.
Spot silver eased 0.1 per cent to US$32.60 an ounce, platinum rose 0.2 per cent to US$967.80 and palladium slipped 0.2 per cent to US$941.00. REUTERS
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