PRECIOUS-Gold eases on firmer dollar, Trump tariff plans in focus
Updates with market trading lower
By Anushree Mukherjee
Feb 26 (Reuters) - Gold prices dipped on Wednesday as the dollar ticked up, while investors tracked developments surrounding U.S. President Donald Trump's tariff plans, which could spark trade wars and stoke inflation.
Spot gold XAU= fell 0.1% to $2,911.38 an ounce by 0723 GMT after shedding more than 2% on Tuesday. U.S. gold futures GCcv1 rose 0.2% to $2,923.40.
The dollar index .DXY inched higher from an 11-week low, helped by a rebound in short-term Treasury yields. A stronger dollar makes gold more expensive for foreign buyers. USD/US/
"A correction (in gold prices) towards $2,880 is possible in the next two to three sessions," said Ajay Kedia, director at Mumbai-based Kedia Commodities.
"Long-term outlook remains firm to cross $3,100, supported by trade war concerns, inflation risks, and rising SPDR Gold Trust holdings." GOL/ETF
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.
Offering further signs that Americans were growing anxious about the potential negative impact of Trump's policies, U.S. consumer confidence deteriorated at its sharpest pace in 3-1/2 years in February, while 12-month inflation expectations surged.
High inflation may force the Fed to keep interest rates higher, diminishing the non-yielding gold's appeal.
Fears of Trump's tariff proposals triggering a major global trade war have helped gold scale record highs several times and gain about 11% this year.
Market players are awaiting the U.S. Personal Consumption Expenditures (PCE) report, the Fed's preferred inflation gauge, for insights into the central bank's rate-easing path and monetary policy. The report is due on Friday.
"If the numbers confirm the underlying fear that inflation is ticking higher again, Fed rate-cutting expectations could be further reined in," said Tim Waterer, chief market analyst at KCM Trade.
Spot silver XAG= fell 0.2% to $31.66 an ounce, platinum XPT= eased 0.2% to $964.69 and palladium XPD= gained 0.3% at $930.80.
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