GOLD prices were steady on Thursday (Nov 28), as investors digested a flurry of economic data in the previous session and evaluated the possibility of a tariff war sparked by US president-elect Donald Trump’s policies.
Spot gold was flat at US$2,636.35 per ounce, as at 0013 GMT.
US gold futures fell 0.1 per cent to US$2,635.90.
Amid a wave of economic releases, Wednesday’s spotlight was on Personal Consumption Expenditures price index that matched expectations, with a 0.2 per cent monthly increase and a 2.3 per cent annual rise.
Additionally, the US gross domestic product growth for the third quarter held steady at 2.8 per cent, according to Wednesday’s updated estimate, though consumer spending saw a slight downward revision.
The Federal Reserve’s struggle to bring inflation back to its 2 per cent target, combined with the possibility of higher tariffs under the incoming Trump administration, may constrain the US central bank’s ability to implement interest rate cuts next year.
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Meanwhile, Mexican President Claudia Sheinbaum warned of retaliation if Trump enforces a 25 per cent tariff, citing potential US job losses and higher consumer prices.
Gold is often regarded as a safe-haven investment during periods of economic or geopolitical instability, including trade wars.
According to the CME Group’s FedWatch Tool, markets currently sees a 64.7 per cent chances of a 25-basis-point rate cut by the US Federal Reserve in December.
Trading is expected to be thin with US markets closed on Thursday for Thanksgiving holiday.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.10 per cent to 878.55 tonnes on Wednesday.
Spot silver was slightly changed at US$30.10 per ounce, platinum rose 0.3 per cent to US$929.43 and palladium added 0.4 per cent to US$975.78. REUTERS
