Gold pares losses as dollar weakens, markets gauge Trump tariffs

Gold will likely remain an in-demand asset, analyst says

China unlocks more fiscal stimulus

ADP employment report due later in the day

By Anjana Anil and Anushree Mukherjee

March 5 – Gold erased earlier losses and held steady on Wednesday, helped by a weakening U.S. dollar and safe-haven demand as markets continued to track possible impacts of U.S. President Donald Trump’s fresh tariffs.

Spot gold was little changed at $2,915.48 an ounce as of 0730 GMT after rising nearly 1% on Tuesday, while U.S. gold futures rose 0.2% to $2,926.20.

The dollar index was at a three-month low, making bullion less expensive for overseas buyers. The benchmark 10-year Treasury yields however, gained, diminishing non-yielding gold’s appeal.

“I expect gold will likely remain an in-demand asset whilst international trade uncertainties remain the prevailing market theme,” said Tim Waterer, chief market analyst at KCM Trade.

Trump’s fresh 25% tariffs on Mexican and Canadian imports took effect on Tuesday, along with a doubling of duties on Chinese goods to 20%, spurring trade wars that could slam economic growth and lift prices for Americans still smarting from years of high inflation.

China and Canada retaliated with their own set of tariffs on a range of U.S. goods, with Mexico expected to respond on Sunday.

Federal Reserve Bank of New York President John Williams said that the U.S. tariffs will likely drive inflation higher, while adding that the current interest rate policy is appropriate and does not need changes.

Trump’s policies, widely seen as likely to stoke economic uncertainties, have helped safe-haven gold rise over 10% so far this year.

Higher interest rates, however, could tarnish gold’s appeal.

Markets now await the ADP employment report due later in the day and U.S. nonfarm payrolls on Friday.

Meanwhile, top metals consumer China unlocked more fiscal stimulus, signalling greater efforts to boost consumption as a means to ring-fence the economy’s path towards this year’s growth target of roughly 5%.

Spot silver advanced 0.6% to $32.16 an ounce, platinum gained 1.1% to $971.40, and palladium added 1.4% to $957.75.

This article was generated from an automated news agency feed without modifications to text.