Trump tariff worries set gold on course for eighth straight weekly gain

Gold prices were little changed on Friday but remained on track for an eighth successive weekly gain, driven by concerns over US President Donald Trump’s tariff plans, which could spark trade wars and stoke inflation.

FUNDAMENTALS

* Spot gold was up 0.1% to USD 2,941.25 an ounce, as of 0018 GMT. Bullion rose about 2% so far this week and scaled an all-time high of USD 2,954.69 on Thursday.

* US gold futures were steady at USD 2,956.60.

* Federal Reserve officials are taking note of what they see as rising inflation risks and the uncertain impact of Trump’s trade, immigration, and other policies.

* “Going forward, I consider it is appropriate to hold the federal funds rate in place for some time, given the balance of risks that we face right now,” Federal Reserve Governor Adriana Kugler said on Thursday.

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

* Earlier this week, Trump said he would announce fresh tariffs over the next month or sooner, adding lumber and forest products to previously announced plans to impose duties on imported cars, semiconductors, and pharmaceuticals.

* Since taking office on January 20, Trump has imposed an additional 10% tariff on Chinese imports and a 25% tariff on steel and aluminum.

* Meanwhile, gold exports from Switzerland rose year-on-year in January as supplies to the US soared to the highest in at least 13 years and offset lower deliveries to top consumers China and India, Swiss customs data showed on Thursday.

* Spot silver was steady at USD 32.93 an ounce. Platinum fell 0.2% to USD 976.42, and palladium firmed 0.4% to USD 981.29.

(Reporting by Anushree Mukherjee in Bengaluru; Editing by Varun H K)