Trump tariff worries keep gold near record high level

Feb 20 (Reuters) - Gold prices edged higher on Thursday, hovering near their all-time highs as concerns persisted over U.S. President Donald Trump's tariff strategies, which could fuel inflation and escalate a global trade war.

FUNDAMENTALS

Spot gold XAU= rose 0.2% to $2,938.57 an ounce, as of 0027 GMT. Bullion scaled an all-time high of $2,946.85 on Wednesday.

U.S. gold futures GCcv1 gained 0.7% to $2,955.20.

Trump imposed a 10% tariff on Chinese imports and a 25% tariff on steel and aluminium earlier this month. Furthermore, he recently said he intends to impose auto tariffs "in the neighborhood of 25%", along with similar duties on semiconductor and pharmaceutical imports.

Minutes of the latest Federal Reserve policy meeting on Wednesday showed that Trump's initial policy proposals raised concern about higher inflation and affirmed a continued pause on rate cuts.

The Fed held its benchmark interest rate at 4.25%-4.50% range at its meeting last month, and officials have since said they are in no rush to cut rates again until they are more certain inflation will decline to the 2% target.

Traders currently see the Fed delivering 38 basis points worth of rate cuts by December, according to LSEG data. FEDWATCH

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

A slew of Fed officials are scheduled to speak later in the day, which could provide further insights on U.S. central bank's monetary policy.

Spot silver XAG= was steady at $32.71 an ounce. Platinum XPT= fell 0.2% to $969.70, and palladium XPD= was steady at$968.38.

DATA/EVENTS (GMT)

0100 China Loan Prime Rate 1Y, Loan Prime Rate 5Y Feb

1330 US Initial Jobless Clm 15 Feb, w/e

1330 US Philly Fed Business Indx Feb

1500 EU Consumer Confid. Flash Feb

1530 US EIA-Nat Gas Chg Bcf, Nat Gas-EIA Implied Flow 14 Feb, w/e