Gold prices firmed on Monday, and hovered near a record high hit in the previous session, as investors sought refuge in the safe-haven asset after U.S. President Donald Trump’s decision to impose fresh tariffs sparked concerns of a global trade war.
FUNDAMENTALS
* Spot gold was up 0.3% at $2,868.66 per ounce, as of 0005 GMT, after hitting a record high of $2,886.62 on Friday.
* U.S. gold futures rose 0.2% to $2,894.00.
* Trump said during the weekend that he will announce new 25% tariffs on Monday on all steel and aluminum imports into the U.S., which would come on top of existing metals duties in another major escalation of his trade policy overhaul * Last week, Trump said he plans to announce reciprocal tariffs on many countries by Monday or Tuesday of next week, a major escalation of his offensive to tear up and reshape global trade relationships in the U.S.’ favour.
* Gold is often used as a safe investment during times of political and financial uncertainty.
* Trump said he believed the U.S. was making progress in its talks to end the war between Russia and Ukraine, but declined to provide details about any communications he had with Russian President Vladimir Putin.
* A Labor Department on Friday reported a 4% unemployment rate last month and the addition of 143,000 jobs, a picture “consistent with a healthy labour market that is neither weakening nor showing signs of overheating,” Federal Reserve Governor Adriana Kugler said in Miami, Florida.
* China’s central bank added gold to its reserves in January for a third month, official data by the People’s Bank of China (PBOC) showed on Friday.
* Spot silver was steady at $31.82 per ounce and platinum fell 0.3% to $973.60. Palladium was up 0.4% at $968.29.
No major data/events expected for Monday, February 10.