HG MARKETS:

Gold prices remained mostly stable during Asian trading on Friday, yet they were still at a record high after a significant surge in the previous session driven by growing uncertainty surrounding U.S. tariffs. Investors, wary of the evolving trade situation, were also waiting for the release of an important U.S. inflation report.

Spot gold held steady near its all-time high of $2,799.60 per ounce, while Gold Futures for March delivery edged up by 0.1%, reaching $2840 per ounce. The recent volatility in U.S. trade policies, particularly under President Donald Trump, has created significant uncertainty in global markets.

Trump’s decision to impose hefty tariffs on imports from BRICS countries—Brazil, Russia, India, China, and South Africa—has raised concerns about the potential for trade conflicts that could disrupt economic stability. He also reaffirmed plans to enforce a 25% tariff on imports from Canada and Mexico starting February 1, with additional tariffs on Chinese goods potentially in the pipeline. This unpredictable environment has pushed investors toward gold, traditionally seen as a safe-haven asset during times of geopolitical or economic turmoil.

Earlier this week, the U.S. Federal Reserve opted to keep its benchmark interest rate unchanged. Fed Chair Jerome Powell suggested that the central bank had no immediate plans for rate cuts, which has kept the focus on economic conditions and inflation. The market now awaits the release of the U.S. Personal Consumption Expenditures (PCE) price index for December—an important measure of inflation that the Fed uses as its preferred gauge. A higher-than-expected PCE reading could influence the Fed’s policy decisions, potentially leading to further fluctuations in gold prices.

Elsewhere in the precious metals market, performance was mixed. Platinum Futures remained largely unchanged at $1,027.80 per ounce, while Silver Futures rose by 0.7%, reaching $32.76 per ounce. However, concerns about weakening demand from China, coupled with Trump’s aggressive tariff strategies targeting industries like steel, aluminum, and pharmaceuticals, have heightened worries about the economic outlook for industrial metals. The combination of these factors has contributed to an uncertain and volatile market environment.