Gold Climbs on Tariff Threats Ahead of Key U.S. Inflation Data

Gold advanced on Tuesday as investors sought safety amid renewed trade frictions and awaited U.S. inflation figures that could clarify the Federal Reserve’s next move on interest rates. Spot bullion rose 0.5% to $3,359.01 an ounce by 06:35 GMT, while U.S. gold futures gained 0.3% to $3,368.20. "Gold has shown in the past that it is an asset of choice when tariff tensions are ratcheted up," said Tim Waterer, chief market analyst at KCM Trade, adding that a weaker dollar or lower Treasury yields would be needed for prices to test $3,400. Demand for haven assets firmed after President Donald Trump threatened to impose a 30% tariff on imports from Mexico and the European Union starting Aug. 1 unless new trade deals are struck. The U.S. consumer-price index for June, due at 12:30 GMT, is forecast to show headline inflation accelerating to 2.7% year-on-year, with core inflation at 3.0%. Traders are still betting on 50 basis points of Fed rate cuts by December, with the first reduction expected in September. Among other precious metals, silver added 0.5% to $38.32 an ounce after touching its highest level since September 2011. Platinum climbed 1.1% to $1,379.22, and palladium gained 0.5% to $1,200.01.