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Stability in Gold Prices Amid Anticipation of U.S. Job Data and Trade Tensions
Gold prices remained steady during early Thursday trading, as investors awaited the release of U.S. non-farm payroll data, which could provide insights into the Federal Reserve’s interest rate decisions amidst escalating trade tensions between the United States and its trading partners.
Price Update
Spot gold prices showed little change, holding at $2,917.90 per ounce by 0021 GMT. Meanwhile, U.S. gold futures saw a slight uptick of 0.1%, reaching $2,927.40, according to data from Reuters.
Other precious metals saw mixed movements. Silver decreased by 0.1% to $32.60 per ounce, platinum increased by 0.2% to $967.80, and palladium dropped by 0.2% to $941.00.
Concerns Over Trump’s Trade Policies
On Wednesday, the White House announced that U.S. President Donald Trump would temporarily exempt automakers from a 25% tariff on imports from Canada and Mexico for one month, provided they comply with the existing trade agreement. Trump’s imposition of tariffs has strained relations with Canada, Mexico, and China, with both Canada and China retaliating by placing tariffs on certain U.S. imports. Mexico also pledged to respond accordingly.
These concerns over Trump’s trade policies contributed to the surge in gold prices, which reached a record high of $2,956.15 on February 24, as investors sought gold as a safe-haven asset.
Could the U.S. Shift from Gold to Bitcoin?
The U.S. service sector unexpectedly grew in February, and input prices surged, contributing to an increase in raw material costs for manufacturers, raising concerns about inflation in the coming months. Typically, gold is viewed as a hedge against political risks and inflation. However, rising interest rates reduce the appeal of the precious metal, as it does not yield returns.
Markets are currently awaiting the upcoming non-farm payroll report, due on Friday, for further insights into the Federal Reserve’s potential interest rate decisions.