Gold pauses after hitting record high amid Donald Trump tariffs stoking trade war fears
US President Donald Trump threatened to charge a 200% tariff on imports of European wines and spirits after the EU imposed a 50% tax on American whiskey.
Gold held steady on Friday after hitting a record high due to persistent uncertainty over US tariffs, fears of trade tensions, and increased expectations of the Federal Reserve easing monetary policy.
International gold prices reached $2,986.45 an ounce after hitting a record high of $2,989.46, within touching distance of the $3,000 an ounce milestone, according to a report by news agency Reuters.
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Meanwhile, gold futures in India on the Multi Commodity Exchange (MCX) hit ₹87,775.
US gold futures, in particular, rose by 0.3% to $2,999.50.
This comes as trade war fears skyrocketed after US President Donald Trump threatened to charge a 200% tariff on imports of European wines and spirits after the European Union (EU) responded to US tariffs on steel and aluminium by imposing a 50% tax on American whiskey, according to the report.
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{{/usCountry}}Additionally US Labor Department data showed that consumer prices remained unexpectedly unchanged in February, while it had risen 0.2% last month after accelerating 0.5% in January.
{{/usCountry}}Additionally US Labor Department data showed that consumer prices remained unexpectedly unchanged in February, while it had risen 0.2% last month after accelerating 0.5% in January.
{{/usCountry}}All of this drove up the prices of the yellow metal, which is seen as a safe haven asset, serving as a hedge against against political risks and inflation.
{{/usCountry}}All of this drove up the prices of the yellow metal, which is seen as a safe haven asset, serving as a hedge against against political risks and inflation.
{{/usCountry}}Markets are also awaiting the US Federal Reserve's monetary policy meeting next Wednesday, with the current expectations being it may keep its benchmark overnight interest rate in the 4.25%-4.50% range, according to the report
{{/usCountry}}Markets are also awaiting the US Federal Reserve's monetary policy meeting next Wednesday, with the current expectations being it may keep its benchmark overnight interest rate in the 4.25%-4.50% range, according to the report
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{{/usCountry}}Russia's President Vladimir Putin had also said on Thursday that the country supported the US proposal for a ceasefire in Ukraine in principle, but also sought a number of clarifications and conditions that appeared to rule out a quick end to the fighting.
{{/usCountry}}Russia's President Vladimir Putin had also said on Thursday that the country supported the US proposal for a ceasefire in Ukraine in principle, but also sought a number of clarifications and conditions that appeared to rule out a quick end to the fighting.
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