By Anushree Mukherjee
(Reuters) – Gold prices held steady on Friday and were poised for a seventh consecutive weekly gain as U.S. President Donald Trump’s plans to impose reciprocal tariffs on every country taxing U.S. imports fuelled concerns of a global trade war.
Spot gold held its ground at $2,929.05 per ounce, as of 0303 GMT. Bullion hit a record peak of $2,942.70 on Tuesday.
U.S. gold futures rose 0.4% to $2,957.40.
On Thursday, Trump tasked his economics team with devising plans for reciprocal tariffs on every country taxing U.S. imports, and the targets include China, Japan, South Korea and the European Union.
A major trigger for gold prices this week was Trump’s announcement to impose reciprocal tariffs, which is creating tariff war concerns and could impact global economies, said Ajay Kedia, director at Mumbai-based Kedia Commodities.
The market is slightly overbought, which can create some technical profit booking after nearing the $3,000 level, Kedia said.
Meanwhile, data on Thursday showed the U.S. producer price index (PPI) saw a strong increase in January, following Wednesday’s inflation report that revealed consumer prices had risen at the fastest pace in nearly a year and a half.
The PPI data offered more evidence that inflation was accelerating again and strengthened views that the Federal Reserve would not cut interest rates before the second-half of the year.
Bullion is traditionally viewed as a safe haven against inflation and economic uncertainty, but the appeal of this non-yielding asset diminishes with rising interest rates.
A surge in global gold prices, which have hit record highs, dampened jewellery sales during India’s wedding season, while dealers in China have resorted to offering discounts to attract buyers.
Spot silver gained 0.4% to $32.50 per ounce. Platinum was up 0.3% at $997.65 and palladium rose 0.6% to $999.77. All three metals were set for a weekly gain
(Reporting by Anushree Mukherjee in Bengaluru; Editing by Sherry Jacob-Phillips and Sonia Cheema)
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