Gold climbs 1pc as US tariff uncertainty lifts safe-haven demand

Gold prices climbed 1 percent on Wednesday, as investors flocked to the safe-haven metal during Asian trading, weighing uncertainty over US tariffs following the US Supreme Court's ruling that struck down a swathe of President Donald Trump's measures.

Spot gold was at US$5,198 (HK$40,544.4) per ounce, as of 0534 GMT. Bullion ended the previous session down more than 1 percent, as investors locked in profits after gold hit a three-week high earlier in the day.

US gold futures for April delivery were up 0.8 percent at US$5,217.30.

"The return of the Chinese market, along with increased policy uncertainty in the United States, is maintaining the appeal of gold and, to an extent, silver as well," said KyleRodda, a senior market analyst at Capital.com.

The United States began collecting a temporary 10 percent global import tariff on Tuesday, but Washington was working to raise it to 15 percent, a White House official said, sowing confusion over Trump's tariff policies after the Supreme Court's defeat last week.

Meanwhile, two US Federal Reserve officials signaled no near-term appetite to change the setting of central bank interest rate policy.

Markets currently expect three 25-basis-point rate cuts this year, according to CME's FedWatch Tool.

"There's still ample room for further upside for gold here, especially if all the things driving gold prices higher, such as US fiscal trade, foreign policy, continue to persist," Rodda added.

Trump briefly outlined the case for a possible attack on Iran during his State of the Union speech to Congress on Tuesday, saying he would not allow the country to obtain a nuclear weapon.

The remarks come as Iran inches closer to a deal with China to purchase anti-ship cruise missiles, according to six people familiar with the negotiations. Iran and the US are set to hold a third round of nuclear talks on Thursday in Geneva.

Spot silver climbed 3 percent to US$89.92 per ounce, a three-week high.

Spot platinum rose 3.6 percent to US$2,244.85 per ounce, its highest point since February 5, while palladium added 2.4 percent to a three-week high of US$1,811.37.

REUTERS