Gold Prices Steady Amid Economic Data and Tariff Concerns
Spot gold was flat at US$2,636.35 per ounce, as at 0013 GMT, while US gold futures fell 0.1 per cent to US$2,635.90.
Economic Data and Tariff Concerns
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.
Fed’s Inflation Target and Interest Rate Cuts
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.
Trade War Concerns
Mexican President Claudia Sheinbaum warned of retaliation if Trump enforces a 25 per cent tariff, citing potential US job losses and higher consumer prices.
Conclusion
Gold prices remained steady amid a flurry of economic data and concerns over a potential trade war sparked by US president-elect Donald Trump’s policies. The metal is often regarded as a safe-haven investment during periods of economic or geopolitical instability, including trade wars.
Frequently Asked Questions
Q: What was the spot gold price at 0013 GMT?
A: US$2,636.35 per ounce.
Q: What was the US gold futures price?
A: US$2,635.90.
Q: What is the likelihood of a 25-basis-point rate cut by the US Federal Reserve in December?
A: According to the CME Group’s FedWatch Tool, markets currently sees a 64.7 per cent chance.
