Investing.com — Gold prices held steady Tuesday as traders digested the latest U.S. inflation data as well as a report on President-elect Donald Trump’s planned trade tariffs.
At 09:15 ET (14:15 GMT), it was trading mostly flat at $2,663.35 per ounce, with February expiration down 0.1% to $2,676.44 per ounce.
US inflation data in pictures
US producer prices rose more slowly than expected in December, rising 0.2% month-on-month, below the 0.4% pace in November.
Compared to a year earlier, the PPI rose 3.3%, an acceleration from 3.0% in the previous month but cooler than estimates of 3.5%.
This data suggested a possible easing of inflationary pressures, which, when added to Wednesday’s data, will likely play a role in how the Federal Reserve approaches future interest rate decisions.
Persistent inflation and a strong labor market could give the Federal Reserve more leeway to keep rates high — a trend that does not bode well for non-yielding assets like gold and other metals.
According to the report, Trump’s trade tariffs could be implemented gradually
Trump’s team is preparing a plan for a gradual imposition of trade tariffs in the coming months, Bloomberg reported Monday, although it was unclear whether the president-elect will implement the plan.
The plan includes tariff increases of between 2% and 5% per month, and will give Washington more leverage in trade negotiations, while also preventing a sudden rise in inflation caused by the tariffs.
Concerns about Trump’s tariffs had pushed gold demand into a safe haven, especially as he prepares to take office on January 20.
But this has been largely offset by concerns that rates will also play a role in higher inflation, keeping interest rates at their level for longer.
Trump has promised to impose steep import duties from “day one” of his presidency, with a promised 60% tariff on China being the biggest concern.
Among other precious metals, the price rose 1.9% to $956.30 per ounce, while it fell 0.1% to $30.265 per ounce.
Gold could hit another record high in 2025
Gold prices could soar to a new record high in 2025 as investors look for safe havens in response to likely “bouts of stock market volatility”, UBS analysts said.
The yellow metal rose 27% in 2024, reaching an all-time high of $2,788 per ounce in October and a record annual average price of $2,389 per ounce.
Despite a sell-off following a rush into riskier assets following Trump’s US election victory, it was still gold’s strongest annual gain since 2020.
Copper looks to China for guidance
Among industrial metals, copper prices traded mixed on Tuesday, with traders looking for signs of massive stimulus from Beijing.
The benchmark on the London Metal Exchange rose 0.3% to $9,118.0 per tonne, while March fell 0.2% to $4.3135 per pound.
Copper was supported this week by data showing continued resilience in Chinese imports of the red metal, which hit a 13-month high in December.
(Ambar Warrick contributed to this article.)
