Gold Steady as Traders Weigh Trump’s Policy, Fed Outlook
Gold held gains, as traders weighed U.S. President Donald Trump’s foreign policy moves and the threat of tariffs.
Bullion traded just below $2,900 an ounce, after rising 0.5% on Monday, amid tensions between the U.S. and the European Union. Bloomberg News reported that the U.S. government has asked European countries to explain what security guarantees they are willing to provide to Ukraine as part of a peace settlement. The move follows Trump’s push to start talks with Russia’s Vladimir Putin.
Investors are also awaiting further insight into Trump’s reciprocal tariff plan, a complicated effort that could take months. Its trade has been increasingly muddled by delays and exceptions, with concerns about the impact of global economic policy helping bullion’s role as a store of value.
Monetary policy is also in focus. Federal Reserve Chairman Christopher Waller said recent data supports keeping interest rates on hold, in remarks he is scheduled to deliver on Tuesday in Sydney. On Monday, Fed Bank of Philadelphia President Patrick Harker said policy was well-positioned as officials await more progress on inflation. Lower borrowing costs tend to benefit gold.
The commodity has performed well since the turn of the year, posting seven weekly gains — its longest winning streak since 2020 — and hitting back-to-back records. In addition to the boost from the backlash against Trump’s policies, the metal has been helped by continued buying by central banks, including China, and inflows into bullion-backed exchange-traded funds.
Spot gold edged up 0.1% to $2,899.50 an ounce as of 8:36 a.m. in Singapore. The Bloomberg Dollar Spot Index was steady, after falling 0.1% on Monday. Silver was flat, palladium rose and platinum fell.
Source: Bloomberg
