Gold in tight range with focus on Trump tariffs, inflation data
Gold traded in a relatively narrow range on Thursday as investors focused on U.S. President Donald Trump's tariff plans and a key inflation report for further monetary policy cues.
Spot gold was up 0.1% at $2,761.59 per ounce, as of 0622 GMT. U.S. gold futures climbed 0.1% to $2,773.30. The premium over spot rates was at nearly $12.
Investors are now awaiting the December U.S. personal consumption expenditures (PCE) price index report, due on Friday, to assess the inflation trajectory.
The Federal Reserve held interest rates steady on Wednesday and Chair Jerome Powell said there would be no rush to cut them again until inflation and jobs data made it appropriate to do so.
Bullion is considered a hedge against inflation, but higher interest rates dampen the non-yielding bullion's appeal.
"Investment demand has to increase to keep gold prices moving towards the $2,900 or $3,000 level," said Soni Kumari, a commodity strategist at ANZ.
It will all depend on policy changes, inflation, and geopolitical risks and how all that plays out, said Kumari.
Earlier this week, the White House said Trump still plans to hit Mexico and Canada with steep tariffs on Saturday and he is "very much" considering some on China.
London bullion market players are racing to borrow gold from central banks, following a surge in gold deliveries to the U.S. amid tariff fears.
Elsewhere, the European Central Bank is all but certain to cut interest rates later in the day and is likely to keep open the door to further policy easing.
Trading remained thin, with top gold consumer China closed for the Lunar New Year holidays along with South Korea, Taiwan, Malaysia and Singapore.
Spot silver steadied at $30.83 per ounce, platinum added 1.3% to 958.68, and palladium gained 0.5% to $967.
