Gold inches higher on concerns over Trump tariff threats

FUNDAMENTALS

* Spot gold was up 0.1% at $2,898.99, as of 0030 GMT. U.S. gold futures gained 0.4% to $2,912.60.

* U.S. Federal Reserve Governor Michelle Bowman said on Monday she wanted increased conviction that inflation will decline further this year before lowering interest rates again, particularly given uncertainty around the impact of the Trump administration’s new trade and other policies.

* Since his inauguration, Trump has imposed a 10% tariff on Chinese imports, announced and delayed 25% tariffs on goods from Mexico and non-energy imports from Canada, set a date for 25% tariffs on imported steel and aluminium, and is planning reciprocal tariffs on all countries taxing U.S. imports. * Bullion is viewed as a traditional hedge against rising inflation and geopolitical uncertainties.
* Fed officials are scheduled to speak later in the day to give further insights on monetary policy trajectory.
* Meanwhile, Goldman Sachs raised its gold price forecast to $3,100 per ounce from $2,890 per ounce for end-2025 on structurally higher central bank demand.
* On the geopolitical front, a group of European leaders agreed at a meeting in Paris on Monday they were ready to give Ukraine security guarantees, but it would be dangerous to conclude a ceasefire without a peace agreement at the same time, a European Union official said.

* Spot silver fell 1.3% to $32.37 an ounce. Platinum gained 0.5% to $980.29, and palladium climbed 1.4% to $976.35.

DATA/EVENTS (GMT) 0700 UK Claimant Count Unem Chng, HMRC Payrolls Change Jan 0700 UK ILO Unemployment Rate Dec 0745 France CPI (EU Norm) Final MM, CPI (EU Norm) Final YY Jan 0745 France CPI YY NSA, CPI MM NSA Jan 1000 Germany ZEW Economic Sentiment, ZEW Current Conditions Feb.