Gold steady as concerns loom over Trump's reciprocal tariff plans
Gold prices held steady on Wednesday as market participants squared positions ahead of U.S. President Donald Trump's sweeping reciprocal tariff plans, which they fear will fuel inflation and hinder economic growth.
Spot gold held ground at $3,019.72 an ounce as of 0328 GMT. U.S. gold futures eased 0.1% to $3,023.60.
"There are real concerns around U.S. economic growth and as well as inflation. U.S. is likely to face a stagflationary scenario, and that could support prices," said Soni Kumari, a commodity strategist at ANZ.
U.S. consumer confidence plunged to the lowest in more than four years in March, with households fearing a recession in the future and higher inflation triggered by tariffs.
The spotlight is now on potential reciprocal tariffs that the U.S. administration might adopt on April 2, causing some nervousness in the market.
Trump's tariff policies are likely to be inflationary, potentially slowing economic growth and intensifying trade tensions.
Gold, traditionally seen as a hedge against geopolitical and economic uncertainties, has risen 15% so far this year, scaling an all-time peak of $3,057.21 on March 20.
Several Federal Reserve officials are due to speak later in the day, offering more insights into this year's monetary policy as uncertainty looms over tariffs.
Markets are awaiting the U.S. Personal Consumption Expenditures data on Friday for clues on the Fed's next moves.
"We are forecasting $3,200 by September," Kumari said, adding that any hawkish comment from the Fed could be a factor impeding gold's rally.
On the geopolitical front, the United States on Tuesday reached deals with Ukraine and Russia to pause their attacks at sea and against energy targets, with Washington agreeing to push to lift some sanctions against Moscow.
Spot silver fell 0.2% to $33.69 an ounce and platinum eased 0.1% to $975.45. Palladium lost 0.3% to $953.45. (Reporting by Anushree Mukherjee in Bengaluru; Editing by Sumana Nandy and Janane Venkatraman)
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