Market News

Bullion was near $3,335 an ounce after Indonesia’s president confirmed Trump’s announcement of a 19% tariff on goods from the country. Trump also said levies on pharmaceuticals could be introduced by the end of the month, with similar measures on semiconductors potentially to follow. Meanwhile, Washington opened an investigation into Brazil over its trade practices.

Gold ended Tuesday down 0.6% after a tame US inflation report fueled speculation that the Federal Reserve may keep monetary policy on hold for now. Higher rates are typically negative for non-interest bearing bullion. Economic data due later Wednesday are expected to show signs of tariff pass-through to producer-goods prices.

The metal has fluctuated in a relatively tight range over the past few months and remains up by more than a quarter this year. It has been supported by anxieties over the fallout of trade tensions, geopolitical conflicts, strong inflows into exchange-traded funds and central bank buying.

Spot gold was 0.3% higher at $3,334.42 an ounce as of 12:21 p.m. London time. The Bloomberg Dollar Spot Index weakened slightly. Palladium and platinum gained. Silver also rose, after pulling back over the previous two sessions from an almost 14-year high.

Silver will extend a rally beyond $40 an ounce in the coming months on tightening physical supplies and growing investment demand, according to Citigroup Inc. The bank raised its three-month forecast to $40 and increased the six-to-12 month outlook to $43.

--With assistance from Jack Ryan.