Gold surged more than 1% in Tuesday trading on safe-haven demand amid uncertainty over President Donald Trump’s controversial proposed trade policy.
At 9.20am, gold was at $2,931.11, down 0.15% since it opened early Wednesday in Asian trading.
Financial markets remained volatile following US President Trump’s imposition of tariffs last week on steel and aluminum imports and plans to impose retaliatory duties on foreign countries.
This prompted bullion prices to create new highs after reaching $2,942 on February 11.
In addition, investors remained cautious about Federal Reserve (Fed) officials who saw difficulties as inflation data (CPI) rose for the fifth consecutive month.
San Francisco Fed President Mary Daly said current policy should remain neutral until they really see progress in inflation.
This week, market participants will watch the release of the Federal Open Market Committee (FOMC) January monetary policy minutes report along with housing data, Initial Jobless Claims for last week and the S&P Global Flash PMI.
