Gold eases as dollar rises ahead of US Fed minutes

(Reuters) – Gold prices slipped after hitting a record high earlier on Wednesday as the dollar rose, while U.S. President Donald Trump’s latest tariff threats kept investors on edge ahead of minutes from the Federal Reserve’s January policy meeting.

Spot gold lost 0.5% to $2,920.74 per ounce as of 1:35 p.m. ET (18:35 GMT). Bullion surged to an all-time high of $2,946.85/oz earlier in the session.

U.S. gold futures fell 0.4% to $2,936.80.

The dollar index rose 0.2% against its rivals, making gold more expensive for other currency holders.

“We are in a state of unusual-heightened uncertainty… the catalyst is the tariffs and trade talks or threats that are going on around the world,” which is supporting the prices, said Paul Wong, market strategist at Sprott Asset Management.

Trump said on Tuesday that he intends to impose auto tariffs “in the neighborhood of 25%”, along with similar duties on semiconductor and pharmaceutical imports.

This follows his recent move to impose a 10% tariff on Chinese imports and a 25% tariff on steel and aluminium earlier this month.

Bullion is seen as a safeguard against geopolitical risks and inflation, but rising interest rates diminish its attractiveness as a non-yielding asset.

Fed officials remain uncertain about the impact tariffs might have on inflation.

Traders currently see at least one 25-basis-point rate cut and a 44% chance of an additional lowering by December, according to LSEG data.

Investors will analyze the minutes from the U.S. central bank’s January policy meeting, due later in the day, for clues on the Fed’s rate trajectory.

Among other metals, spot silver, used in electrical components, shed 0.8% to $32.60 an ounce, aiming to challenge a 10-year high.

Platinum declined 2% to $967.97 and palladium eased 1.8% to $969.51.

“Although the imposition of tariffs could hurt silver’s industrial demand, it could still push higher from a valuation perspective,” said Han Tan, Exinity Group chief market analyst.

(Reporting by Daksh Grover and Sarah Qureshi in Bengaluru; Additional reporting by Sherin Varghese; Editing by Shreya Biswas, Shailesh Kuber and Mohammed Safi Shamsi)