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Gold prices steady after record rally

February 05, 2025 00:00:00


Gold prices were steady on Tuesday, after a record rally in the previous session, with investors cautious about the potential effects of President Donald Trump's tariffs and ahead of the US economic data set to be released later this week, reports Reuters.

Spot gold gained 0.05 per cent to $2,815.00 per ounce as of 1133 GMT after hitting a record high of $2,830.49 on Monday.

US gold futures fell 0.6 per cent to $2,841.10. Global bullion banks are flying gold to the US from hubs like Dubai and Hong Kong to take advantage of the high premium the US gold futures are commanding over spot prices on tariff concerns.

China imposed tariffs on US imports in a swift response to new US duties, escalating the trade war between the world's top two economies even as Trump offered reprieves to Mexico and Canada.

"It (Mexico and Canada tariff pause) does not remove the fact that global markets remain troubled by the prospect of trade wars that may boost prices while lowering the economic outlook," said Ole Hansen, head of commodity strategy at Saxo Bank.

The Trump administration's plans for trade tariffs come with inflation risks, three Fed officials warned on Monday, with one arguing that uncertainty over the outlook for prices calls for slower interest rate cuts than otherwise.


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