Gold steadies near all-time high on Trump tariff concerns

FUNDAMENTALS

* Spot gold was little changed at $2,949.46 an ounce as of 0105 GMT, about $7 shy of the all-time high of $2,956.15 scaled in the previous session.

* U.S. gold futures steadied at $2,965.

* Trump on Monday said that tariffs on Canadian and Mexican imports are “on time and on schedule” despite efforts by the countries to beef up border security and halt the flow of fentanyl into the U.S. ahead of a March 4 deadline. * Investors and economists expect the U.S. Federal Reserve to respond “strongly and systematically” to changes in inflation and the labor market, according to research published on Monday by the San Francisco Fed.

* Traders are keeping a close tab on the Fed’s interest rate trajectory for clues, as Trump’s policies are viewed as inflationary.

* Gold is considered a safe investment during uncertainties. However, if higher inflation forces the Fed to maintain rates higher for longer, gold’s appeal as a non-yielding asset will decrease.

* Investors will watch Friday’s U.S. Personal Consumption Expenditures report, the Fed’s preferred inflation gauge.

* On the geopolitical front, Trump and French President Emmanuel Macron displayed stark differences in their approach to Ukraine, exposing a divide between the United States and Europe over Trump’s bid for a quick ceasefire deal with Russia.

* Elsewhere, India’s gold imports are set to tumble 85% in February from year-ago levels to their lowest in 20 years, with demand sapped by record prices for the precious metal. India is the world’s second biggest consumer of bullion.

* Spot silver shed 0.3% to $32.27 an ounce, platinum dropped 0.3% to $963.35, and palladium was 0.3% lower at $937.27.

DATA/EVENTS (GMT) 0500 Japan Chain Store Sales YY Jan 0700 Germany GDP Detailed QQ SA, GDP Detailed YY NSA Q4 1500 US Consumer Confidence Feb.