Gold prices lifted Thursday, maintaining the US$3,000 psychological support as traders anticipated the release of key United States personal consumption expenditures (PCE) inflation data.
Market sentiment was further influenced by President Donald Trump’s tariff policies and concerns over U.S. economic growth.
By 4:05 pm AEDT (5:05 am GMT), spot gold was up $14.93, or 0.5%, trading at US$3,034.15 per ounce.
The precious metal benefited from a pullback in the U.S. dollar, which retreated from a three-week high after Trump announced 25% tariffs on the automotive sector.
Gold’s movement remained closely tied to ongoing tariff developments. While initial reports suggested that Trump’s new trade measures could weigh on the U.S. dollar, renewed concerns over inflation and economic uncertainty bolstered the greenback, limiting gold’s gains.
Market uncertainty was further heightened by Federal Reserve policymakers’ hawkish stance.
St. Louis Fed President Alberto Musalem stated there was no immediate need for rate cuts, while Minneapolis Fed President Neel Kashkari suggested that the central bank should maintain its current policy stance amid economic uncertainty.
