Gold prices consolidated below record highs during Wednesday's Asian session as traders looked ahead to the release of the U.S. Federal Reserve’s January meeting minutes and assessed the impact of renewed U.S. tariff threats.
By 4:30 pm AEDT (5:30 am GMT) spot gold was down $4.98 or 0.2% to US$2,930.66 per ounce, just 0.4% below record highs touched earlier in the week.
Safe-haven demand for gold remains strong, driven by U.S. President Donald Trump’s escalating tariff rhetoric and peace negotiations between the U.S. and Russia over Ukraine.
Trump said on Tuesday that tariffs on pharmaceuticals and semiconductor chips would start at "25% or higher" and could increase significantly over the next year.
These comments follow his Friday announcement that automobile tariffs will take effect as early as 2 April, a move that could disrupt global supply chains and heighten inflationary pressures, particularly in the European Union and Asia.
With no breakthrough in U.S.-Russia peace talks and concerns over escalating trade tensions, investors have shifted toward safe-haven assets such as gold and the U.S. dollar.
Gold traders will also be closely monitoring the Federal Reserve’s meeting minutes, as the central bank’s stance on inflation and monetary easing could influence market expectations for interest rate cuts this year.
