KUWAIT CITY, March 13: Gold prices rose as demand for the yellow metal increased amid concerns over tariffs and the ongoing trade war between the US and several countries, reports Al-Seyassah daily. Meanwhile, lower-than-expected US inflation data provided additional support by reinforcing expectations of interest rate cuts. By 3:50 am Kuwait time, spot gold was up 0.2 percent at $2,938.24 per ounce, while US gold futures remained steady at $2,945.70. Data showed that the US consumer price index rose less than expected last month. However, this improvement is likely to be temporary, given the impact of tight import tariffs, which are expected to raise the cost of most goods in the coming months. Lower inflation provides more room for the US Federal Reserve to cut interest rates. Non-yielding gold tends to remain resilient amid lower interest rates.

Earlier this month, US President Donald Trump triggered a trade war by raising tariffs by 20 percent on Chinese goods and imposing new 25 percent tariffs on Canadian and Mexican imports. Trump later eased the tariffs, granting a one-month exemption for certain goods that met the rules of origin under the United States-Mexico-Canada Agreement. Trump also backtracked on Tuesday afternoon from his pledge to double tariffs on Canadian steel and aluminum to 50 percent, just hours after announcing the tariff increases. The tariff hike was widely expected to increase inflation and economic uncertainty, which pushed gold to a record high of $2,956.15 on February 24, 2025. Gold is often seen as a hedge against political risk and inflation. Investors are now awaiting the US producer price index data, set to be released later Thursday, for further insights into the Federal Reserve’s monetary policy. Meanwhile, spot silver rose 0.2 percent to $33.29 an ounce, platinum rose by 0.2 percent to $985.18, and palladium increased by 0.6 percent to $954.63.

By Najeh Bilal and Marwa Al-Bahrawi

Al-Seyassah/Arab Times Staff