Trump tariff worries keep gold near record high

Gold prices held firm near a record high on Thursday, as U.S. President Donald Trump's tariff plans stoked fears of higher inflation and a major global trade war.

Spot gold rose 0.2% to $2,937.74 an ounce by 0235 GMT, trading near the all-time high of $2,946.85 hit on Wednesday. U.S. gold futures gained 0.7% to $2,955.90.

"Uncertain outlooks for both global trade and inflation are proving to be conducive for gold and are acting to bring the $3,000 level within range," said Tim Waterer, chief market analyst at KCM Trade.

Since his inauguration, Trump has imposed a 10% tariff on Chinese imports and a 25% tariff on steel and aluminium. He said on Wednesday he would announce tariffs related to lumber, cars, semiconductors and pharmaceuticals "over the next month or sooner."

Minutes of the Federal Reserve's last policy meeting showed on Wednesday that Trump's initial policy proposals raised concerns about higher inflation and affirmed a continued pause on rate cuts.

Traders currently see the Fed delivering 38 basis points of rate cuts by December, according to LSEG data.

Bullion is seen as a hedge against geopolitical risks and inflation, but higher interest rates dampen the non-yielding asset's appeal.

Several Fed officials are scheduled to speak later in the day, which could provide further insights on the U.S. central bank's monetary policy.

"If we look at potential risks which could slow gold prices down, safe-haven demand could dry up somewhat if a peace deal moves closer to fruition between Russia and Ukraine," Waterer said.

Trump denounced Ukrainian President Volodymyr Zelenskiy as a "dictator" on Wednesday and warned he had to move quickly to secure peace or risk losing his country.

Spot silver firmed 0.1% to $32.75 an ounce. Platinum was steady at $971.90, and palladium rose 0.1% to $968.94.