Abdullah Al-Haqim 
Anxiety over customs duties continued, which strengthened the demand for gold, while American inflation data, which came less than expected, supported the precious metal prices by enhancing the expectations of reducing interest rates.
By 0050 GMT, gold rose in immediate transactions by 0.2 percent to $ 2938.24 an ounce, while US gold futures settled at $ 2945.70.
The US consumer price rise data showed less than expected last month, but the improvement is likely to be temporary in light of the strict customs duties on imports that are expected to raise the cost of most of the commodities in the coming months.
Low inflation allows more room for the US Federal Reserve (Central Bank) to reduce interest rates. Gold, which does not generate returns back, is lower of interest rates.
US President Donald Trump ignited earlier this month a commercial war by increasing customs duties 20 percent on Chinese goods, and imposing new customs duties by 25 on Canadian and Mexican imports, before it diluted and granted a month’s exemption for some commodities that meet the rules of origin under the trade agreement between the United States, Mexico and Canada.
Trump also fell on Tuesday afternoon his pledge to double the customs duties on Canadian steel and aluminum to 50 percent, hours after he announced the increase in fees.
It is widely expected that the fees will lead to an increase in inflation and economic certainty, and it has pushed gold to a high record level of $ 295.15 on February 24.
Gold is seen as a hedging tool against political risks and inflation.
Investors are now waiting for the US producers ’price index data to be released later today, Thursday, to clarify more features of the monetary policy of the Reserve Council.
For other precious metals, silver in instant transactions increased 0.2 per hundred to $ 33.29 an ounce, platinum rose 0.2 percent to $ 985.18, and palladium rose 0.6 percent to $ 954.63.
