Gold prices were mostly steady in Asian trading on Friday, but hit a record high after surging in the previous session amid uncertainty over U.S. tariffs, while investors cautiously awaited a key U.S. inflation report.

Spot gold was mostly unchanged after hitting a record high of $2,799.60 an ounce, while February gold futures edged up 0.1% to $2,793.74 an ounce by 1:55 p.m. ET (06:55 GMT).

The recent escalation of U.S. trade policy under President Donald Trump has raised considerable uncertainty in global markets.

His announcement of high tariffs on imports from the BRICS nations—Brazil, Russia, India, China and South Africa—has raised concerns about a potential trade conflict and its economic impact.

Trump also reiterated his pledge to impose 25% tariffs on imports from Canada and Mexico starting Feb. 1, with the potential for additional tariffs on Chinese goods.

The uncertainty has prompted investors to turn to safe-haven assets such as gold.

Earlier this week, the U.S. Federal Reserve kept its benchmark interest rate unchanged, with Chairman Jerome Powell indicating no immediate plans for a rate cut.

Market participants are now eagerly awaiting the U.S. December personal consumption expenditures (PCE) price index data, the Fed's preferred inflation gauge, due on Friday.

A higher-than-expected reading could influence the Fed's policy decision, potentially affecting gold prices.

Other precious metals were mixed on Wednesday. Platinum futures were largely unchanged at $1,027.80 an ounce, while silver futures rose 0.7% to $32.76 an ounce.(AL)

Source: Investing.com