GOLD prices edged higher on Tuesday (Feb 18) as uncertainty over US President Donald Trump’s tariffs continued to dominate sentiment, reinforcing bullion’s appeal as a safe-haven asset amid fears of a potential global trade war.
Spot gold was up 0.1 per cent at US$2,898.99, as at 0030 GMT. US gold futures gained 0.4 per cent to US$2,912.60.
US Federal Reserve governor Michelle Bowman said on Monday she wanted increased conviction that inflation will decline further this year before lowering interest rates again, particularly given uncertainty around the impact of the Trump administration’s new trade and other policies.
Since his inauguration, Trump has imposed a 10 per cent tariff on Chinese imports, announced and delayed 25 per cent tariffs on goods from Mexico and non-energy imports from Canada, set a date for 25 per cent tariffs on imported steel and aluminium, and is planning reciprocal tariffs on all countries taxing US imports.
Bullion is viewed as a traditional hedge against rising inflation and geopolitical uncertainties.
Fed officials are scheduled to speak later in the day to give further insights on monetary policy trajectory.
Meanwhile, Goldman Sachs raised its gold price forecast to US$3,100 per ounce from US$2,890 per ounce for end-2025 on structurally higher central bank demand.
On the geopolitical front, a group of European leaders agreed at a meeting in Paris on Monday they were ready to give Ukraine security guarantees, but it would be dangerous to conclude a ceasefire without a peace agreement at the same time, a European Union official said.
Spot silver fell 1.3 per cent to US$32.37 an ounce. Platinum gained 0.5 per cent to US$980.29, and palladium climbed 1.4 per cent to US$976.35. REUTERS
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