GOLD prices firmed on Monday (Mar 3), helped by a weaker US dollar and rising fears that US President Donald Trump’s tariff threats could lead to a global trade war and stoke inflation, thereby fuelling safe-haven demand for the metal.
Spot gold was up 0.3 per cent at US$2,868.29 an ounce, as at 0010 GMT. US gold futures rose 1.1 per cent to US$2,880.70.
The US dollar index fell 0.3 per cent from a two-week high hit in the previous session, making bullion less expensive for other currency holders.
US Commerce Secretary Howard Lutnick said on Sunday that tariffs on Canada and Mexico will go into effect on Tuesday, but Trump will determine whether to stick with the planned 25 per cent level.
Trump also said he would add another 10 per cent tariff on Chinese goods on Tuesday, effectively doubling 10 per cent duties imposed on Feb 4.
On Friday, US consumer spending unexpectedly fell in January, but a pick up in inflation could provide cover for the Federal Reserve to delay cutting interest rates for some time.
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Traders of futures contracts that settle to the Fed’s policy rate maintained bets that the US central bank will restart cuts to short-term borrowing rates in June after data showed inflation rose in line with expectations in January.
In other metals, spot platinum gained 0.4 per cent to US$950.94 an ounce and palladium firmed 1.2 per cent to US$929.72.
Demand for industrial precious metals platinum and palladium will likely fall if tariffs proposed by Trump on US auto imports dampen vehicle sales, analysts said.
Spot silver was up 0.1 per cent at US$31.18. REUTERS
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