Gold price today: Gold rate goes up as trade war sparks concern

Gold prices rose on Tuesday, supported by safe-haven flows as trade war concerns sapped risk sentiment across wider markets, while attention was on U.S. inflation data, as per a report.

Spot gold climbed 0.8 per cent to $2,912.88 an ounce as of 1031 GMT after hitting its lowest since March 3 in the previous session. U.S. gold futures rose 0.6 per cent to $2,917.90, Reuters reported.

The dollar index hit a four-month low, making bullion less expensive for overseas buyers.


U.S. President Donald Trump's fluctuating trade policies - imposing and delaying tariffs on Canada and Mexico, while raising duties on Chinese goods - have roiled the global financial markets. China and Canada have responded with tariffs of their own.

Over the weekend, Trump declined to predict whether the U.S. could face a recession.

"In the short-term we expect investor focus to remain on the effect policy changes, in particular tariffs, will have on U.S. growth and inflation expectations and how this could not only affect real rates but also further incentivize global central bank purchases," said Trevor Yates, analyst at Global X.

"All eyes will be on Wednesday's U.S. February CPI print, with us expecting the pace of inflation to slow during the month."

Federal Reserve Bank of New York's latest Survey of Consumer Expectations showed inflation a year from now is seen at 3.1 per cent, up a hair from January's 3 per cent reading. Markets currently expect Fed to cut in rates in June.

However, gold's role as a hedge could weaken if high inflation leads to sustained higher interest rates, as it yields no interest.

Spot silver added 1.4 per cent to $32.54 an ounce. Platinum was up 1.2 per cent at $970.20 and palladium gained 0.6 per cent to $948.96.

FAQs

Q1. What is current price of silver?
A1. Spot silver added 1.4 per cent to $32.54 an ounce.

Q2. Will there be recession in USA?
A2. Over the weekend, U.S. President Donald Trump declined to predict whether the U.S. could face a recession.