Gold set for 7th weekly gain: What it means for investors
The market is slightly overbought, which can create some technical profit booking after nearing the $3,000 level
Gold prices held steady on Friday and were poised for a seventh consecutive weekly gain as US President Donald Trump’s plans to impose reciprocal tariffs on every country taxing US imports fuelled concerns of a global trade war.
Spot gold held its ground at $2,927.50 per ounce, as of 0534 GMT.
Bullion hit a record peak of $2,942.70 on Tuesday.
Read: Gold prices hit all-time high: What’s fuelling the surge?
US gold futures rose to 0.4 per cent to $2,956.30.
On Thursday, Trump tasked his economics team with devising plans for reciprocal tariffs on every country taxing US imports, and the targets include China, Japan, South Korea and the European Union.
A major trigger for gold prices this week was Trump’s announcement to impose reciprocal tariffs, which is creating tariff war concerns and could impact global economies, said Ajay Kedia, director at Mumbai-based Kedia Commodities.
Also read: Gold price falls: Is the US dollar the culprit?
The market is slightly overbought, which can create some technical profit booking after nearing the $3,000 level, Kedia said.
Meanwhile, data on Thursday showed the US producer price index (PPI) saw a strong increase in January, following Wednesday’s inflation report that revealed consumer prices had risen at the fastest pace in nearly a year and a half.
The PPI data offered more evidence that inflation was accelerating again and strengthened views that the Federal Reserve would not cut interest rates before the second half of the year.
Bullion is traditionally viewed as a safe haven against inflation and economic uncertainty, but the appeal of this non-yielding asset diminishes with rising interest rates.
