March 4 (Reuters) - Gold prices held steady on Tuesday as market participants fretted that U.S. President Donald Trump's tariffs on Canada and Mexico will fuel inflation and hinder economic growth.
FUNDAMENTALS
* Spot gold XAU= was steady at $2,892.64 an ounce, as of 0017 GMT. U.S. gold futures GCcv1 were little changed at $2,902.90.
* Trump said on Monday that 25% tariffs on goods from Mexico and Canada will take effect on Tuesday, stoking fears of a trade war in North America and sending financial markets reeling.
* Trump also said reciprocal tariffs would take effect on April 2 on countries that impose duties on U.S. products, and reaffirmed that he will increase tariffs on all Chinese imports to 20% from the previous 10% levy.
* Higher inflation may force the Federal Reserve to keep rates higher for longer, which would dent non-yielding gold's appeal.
* St. Louis Federal Reserve President Alberto Musalem said on Monday he expects the U.S. economy to continue to expand this year, but recent weaker-than-expected consumption and housing data and reports from business contacts have raised concerns about possible risks to growth.
* Markets are now awaiting ADP employment report due on Wednesday and the U.S. non-farm payrolls report due on Friday for more hints on the Fed's rate trajectory.
* JP Morgan in a note said they hold a long-term structural bullish view for gold with price target of close to $3,000/oz in the fourth-quarter of 2025.
* Spot silver XAG= was unchanged at $31.67 an ounce, platinum XPT= lost 0.2% to $951.60 and palladium XPD= slipped 0.3% to $934.89.
DATA/EVENTS (GMT)
1000 EU Unemployment Rate Jan
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