Gold prices hold steady after Trump's tariff pledge
Bullion hits over one-week low earlier in the session
Trump vows new Canada, Mexico, China tariffs
Open to cutting rates again next month - Fed's Neel Kashkari
Add details, comments and updates prices
By Daksh Grover
Nov 26 (Reuters) -Gold prices held steady on Tuesday after a 3% drop in the previous session, supported by increased safe-haven demand following President-elect Donald Trump's pledge to impose tariffs on all imports from Canada, Mexico and China.
Spot gold XAU= was steady at $2,625.48 per ounce, as of 0259 GMT, after hitting its lowest since Nov. 18 earlier in the session.
U.S. gold futures GCv1 edged 0.3% higher to $2,625.80.
"Despite the extended sell-off yesterday, gold is holding up relatively well, which suggests some safe-haven demand," said said Matt Simpson, senior analyst at City Index, adding "we could see more turbulence ahead, especially with Trump back in focus."
Trump vowed hefty tariffs on Canada, Mexico, and China — risking trade wars.
Gold is traditionally considered a safe-haven investment during periods of economic and geopolitical uncertainty, including trade wars and other conflicts.
Meanwhile, Federal Reserve Bank of Minneapolis President Neel Kashkari, typically on the hawkish end of the U.S. central bank's policy spectrum, said he is open to cutting rates again next month.
According to the CME Group's FedWatch Tool, markets currently estimate a 55.9% chance of a 25-basis-point U.S. Federal Reserve rate cut in December.
Traders will keep a close eye on U.S. consumer confidence data and the minutes from the Fed's November meeting later today, as well as the first revision of GDP and core PCE figures are set to be released later this week.
"I expect gold to trade in a narrow range in the short term, with a slight upward drift," Simpson added.
On the geopolitical front, U.S. President Joe Biden and French President Emmanuel Macron are set to announce a ceasefire in Lebanon between Hezbollah and Israel, according to four senior Lebanese sources.
Spot silver XAG= was flat at $30.29 per ounce, platinum XPT= shed 0.2% to $937.05 and palladium XPD= was up 0.3% at $975.65.
Reporting by Daksh Grover in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips
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.
