Gold prices are down again on Wednesday, $2,902.94 (-$10.64), as uncertainties surrounding U.S. President Donald Trump’s tariff plans dampened risk appetite and boosted safe-haven demand. Trump’s order for a probe into potential new tariffs on copper imports, aimed at rebuilding U.S. production of a metal critical to various industries, has opened another front in his assault on global trade norms. This move, along with deteriorating U.S. consumer confidence and surging inflation expectations, has contributed to a lacklustre state of confidence in the U.S. economy, supporting gold prices.
The ongoing concerns about Trump’s tariff proposals have helped gold reach record highs multiple times and gain about 11% this year. Market participants are now awaiting the U.S. Personal Consumption Expenditures (PCE) report, the Federal Reserve’s preferred inflation gauge, for insights into the central bank’s rate-easing path and monetary policy. Tim Waterer, chief market analyst at KCM Trade, suggests that if the PCE report confirms fears of rising inflation, it could further restrain expectations of Fed rate cuts. Meanwhile, other precious metals saw mixed performance, with spot silver trading at $31.71, down 3 cents.
