Online Reporter
Gold steadied near a record high, as traders balanced the latest hot inflation reading in the US against rising haven demand in the wake of several disruptive trade announcements from President Donald Trump.
Bullion traded above US$2 900 an ounce after a report on Wednesday showed a higher-than-expected rise in US prices, leading traders to price in just one rate cut this year for December.
Treasury yields jumped, weighing on the non-interest bearing precious metal, which fell as much as 1,2 percent before retracing losses as uneasiness surrounding Trump’s aggressive tariff plans continued to spur haven buying.
Investors were also studying commentary from Federal Reserve Chair Jerome Powell, who told lawmakers on Wednesday the US central bank “will make decisions about interest rates as we go,” adding that the most recent data shows “we’re close but not there on inflation.”
He told senators on Tuesday the Fed would be patient before easing monetary policy further.
Gold has roared higher this year, setting successive records and potentially lining up a test of US$3 000 an ounce. The surge has been powered by haven demand amid increasing uncertainty over the outlook for the US economy and monetary policy, with traders trying to gauge whether the new administration’s stance on trade and immigration will reignite inflation and impact growth.
The metal’s recent ascent has been accompanied by inflows into bullion-backed exchange-traded funds. Global holdings have risen more than 1 percent so far this year, hitting the highest since November, according to Bloomberg calculations.
Spot gold edged up 0,1 percent to US$2 907.63 an ounce as of 8:07 a.m. in Singapore, after touching an all-time high of US$2 942.68 on Tuesday. The Bloomberg Dollar Spot Index was flat. Silver and palladium rose, while platinum was flat. — Bloomberg
