Gold holds steady as market awaits US data, tariff impact

Gold held steady on Tuesday as investors awaited a key inflation print this week to assess the Federal Reserve's interest rate path, amid concerns of simmering trade tensions and slowing economic growth following U.S. President Donald Trump's tariffs.

FUNDAMENTALS

* Spot gold little changed at $2,887.61 an ounce as of 0031 GMT, while U.S. gold futures fell 0.3% to $2,891.70.


* Trump, in a Fox News interview, talked about a "period of transition" while declining to predict whether his tariffs on China, Canada and Mexico would result in a U.S. recession.

* Stocks slumped globally on Monday as investor worries about the potential economic slowdown were exacerbated after Trump did not rule out a recession.

* Trump imposed new 25% tariffs on imports from Mexico and Canada last Tuesday, along with fresh duties on Chinese goods.

* He later exempted many imports from Mexico and Canada from those tariffs for a month, creating uncertainty in the markets and fanning worries about U.S. inflation and growth.

* Trump's tariffs are widely seen as likely to stoke inflation and economic uncertainty.

* Worries over Trump's tariff policies pushed safe-haven gold to a record high of $2,956.15 on February 24.

* Gold is seen as a hedge against political risks and inflation.

* Investors now await U.S. Consumer Price Index (CPI) data on Wednesday and Producer Price Index (PPI) data on Thursday to analyse the interest rate stance the Fed may adopt going forward.

* If rising price pressures force the Fed to keep interest rates higher, gold may lose its allure as it is a non-yielding asset.

* Spot silver lost 0.4% to $31.98 an ounce, platinum shed 0.4% to $954.15, and palladium slipped 1.1% to $932.57.

No major data/events expected for Tuesday, March 11.