Gold eases on a stronger dollar; concerns loom over Trump's reciprocal tariff plans

Shafaq News/ Gold prices edged down on Wednesday as the U.S. dollar ticked up, while market participants braced for U.S.

President Donald Trump's sweeping reciprocal tariff plans, which they fear will fuel inflation and hinder economic growth.

Spot gold eased 0.1% to $3,017.49 an ounce as of 0535 GMT. U.S. gold futures fell 0.2% to $3,021.30.

U.S. dollar strength is pressuring prices, said Kelvin Wong, senior market analyst, Asia Pacific, at OANDA, adding that "prices are now trapped in a sideways range due to uncertainty on how the planned 2 April U.S. reciprocal tariffs are going to be implemented."

Trump's tariff policies are likely to be inflationary, potentially slowing economic growth and intensifying trade tensions.

"There are real concerns around U.S. economic growth and as well as inflation. U.S. is likely to face a stagflationary scenario, and that could support prices," said Soni Kumari, a commodity strategist at ANZ.

U.S. consumer confidence plunged to the lowest in more than four years in March, with households fearing a recession and higher inflation triggered by tariffs.

Gold, a hedge against geopolitical and economic instabilities, has risen 15% so far this year, scaling an all-time peak of $3,057.21 on March 20.

Several Federal Reserve officials are due to speak later in the day. Markets await U.S. personal consumption expenditures data on Friday for clues on monetary policy.

"We are forecasting $3,200 by September," ANZ's Kumari said, adding that any hawkish comment from the Fed could be a factor slowing gold's rally.

Elsewhere, the U.S. on Tuesday reached deals with Ukraine and Russia to pause their attacks at sea and against energy targets, with Washington agreeing to push to lift some sanctions against Moscow.

Spot silver fell 0.5% to $33.57 an ounce and platinum lost 0.5% to $971.35. Palladium slipped 0.5% to $951.23.

(REUTERS)