PRECIOUS-Gold recoups from 1-week low as tariff uncertainty weighs on risk appetite

Feb 26 (Reuters) - Gold prices climbed on Wednesday, recovering from a one-week low touched in the previous session, as uncertainties stemming from U.S. President Donald Trump's tariff plans dampened risk appetite and boosted demand for safe-haven bullion.

FUNDAMENTALS

Spot gold XAU= was up 0.3% at $2,925.05 an ounce, as of 0041 GMT. Prices dropped more than 2% on Tuesday.

U.S. gold futures GCcv1 rose 0.6% to $2,936.30.

Amid the ongoing tariff threats, Trump opened yet another front on Tuesday in his assault on global trade norms, ordering a probe into potential new tariffs on copper imports to rebuild U.S. production of a metal critical to electric vehicles, military hardware, the power grid and many consumer goods.

As an aftermath of tariff concerns, U.S. consumer confidence deteriorated at its sharpest pace in 3-1/2 years in February, while 12-month inflation expectations surged.

"It's hard to make significant monetary policy changes amid such uncertainty," Richmond Federal Reserve President Tom Barkin said on Tuesday.

Higher inflation may force the Fed to keep rates higher, tarnishing non-yielding gold's appeal.

Concerns about a looming trade war, fuelled by Trump's tariff proposals, have driven gold, a safe-haven asset, to reach a record high of $2,956.15 on Monday.

Elsewhere, China's total gold imports via Hong Kong in January fell 44.8% from December to their lowest point since April 2022, data from the Hong Kong Census and Statistics Department showed on Tuesday.

Spot silver XAG= was steady at $31.72 an ounce, platinum XPT= rose 0.1% to $967.35, and palladium XPD= was 0.3% higher at $930.32.

DATA/EVENTS (GMT)

0500 Japan Leading Indicator Revised Dec

1500 US New Home Sales-Units Jan