Gold prices held steady amid growing tariff war fears
Nov 28 (Reuters) -Gold prices were steady on Thursday, as investors digested a flurry of economic data in the previous session and evaluated the possibility of a tariff war sparked by U.S. President-elect Donald Trump's policies.
FUNDAMENTALS
* Spot gold XAU= was flat at $2,636.35 per ounce, as of 0013 GMT.
* U.S. gold futures GCv1 fell 0.1% to $2,635.90.
* Amid a wave of economic releases, Wednesday's spotlight was on Personal Consumption Expenditures price index that matched expectations, with a 0.2% monthly increase and a 2.3% annual rise.
* Additionally, the U.S. gross domestic product growth for the third quarter held steady at 2.8%, according to Wednesday's updated estimate, though consumer spending saw a slight downward revision.
* The Federal Reserve's struggle to bring inflation back to its 2% target, combined with the possibility of higher tariffs under the incoming Trump administration, may constrain the U.S. central bank's ability to implement interest rate cuts next year.
* Meanwhile, Mexican President Claudia Sheinbaum warned of retaliation if Trump enforces a 25% tariff, citing potential U.S. job losses and higher consumer prices.
* Gold is often regarded as a safe-haven investment during periods of economic or geopolitical instability, including trade wars.
* According to the CME Group's FedWatch Tool, markets currently sees a 64.7% chances of a 25-basis-point rate cut by the U.S. Federal Reserve in December.
* Trading is expected to be thin with U.S. markets closed on Thursday for Thanksgiving holiday.
* SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.10% to 878.55 tonnes on Wednesday. GOL/ETF
* Spot silver XAG= was slightly changed at $30.10 per ounce, platinum XPT= rose 0.3% to $929.43 and palladium XPD= added 0.4% to $975.78.
Reporting by Daksh Grover in Bengaluru; Editing by Rashmi Aich
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
