Gold prices held steady on Wednesday as market participants braced for U.S. President Donald Trump's tit-for-tat tariffs, which they fear will stoke inflation and hamper economic growth.

Spot gold was up 0.1% at $3,019.72 an ounce by 0328 GMT. U.S. gold futures were down 0.1% at $3,023.60.

"There are real concerns around U.S. economic growth and also inflation. The U.S. is likely to face a stagflation scenario, and that could support prices," said Soni Kumari, commodity strategist at ANZ.

U.S. consumer confidence plunged to its lowest level in more than four years in March, with households worried about a future recession and higher inflation fueled by tariffs. The spotlight is now on potential tit-for-tat tariffs that the U.S. administration could impose on April 2, causing some nervousness in the market. Trump's tariff policies are likely to be inflationary, potentially slowing economic growth and intensifying trade tensions.

Gold, traditionally seen as a hedge against geopolitical and economic uncertainty, has gained 15% this year, hitting an all-time peak of $3,057.21 on March 20.

Several Federal Reserve officials are due to speak later in the day, offering more insight into monetary policy this year as uncertainty over tariffs looms.

The market is looking to U.S. Personal Consumption Expenditures data on Friday for clues on the Fed's next move.

"We are expecting $3,200 by September," Kumari said, adding that any hawkish comments from the Fed could be a factor that dampens gold's rally.

On the geopolitical front, the United States on Tuesday reached a deal with Ukraine and Russia to halt their attacks at sea and on energy targets, with Washington agreeing to push for the lifting of some sanctions on Moscow.

Spot silver fell 0.2% to $33.69 an ounce and platinum fell 0.1% to $975.45. Palladium fell 0.3% to $953.45. (Newsmaker23)

Source: Reuters