Market News

(Bloomberg) -- Gold held steady after the latest Federal Reserve minutes showed officials are divided over the outlook for interest rates.

Bullion traded around $3,313.56 an ounce as of 2:24 p.m. in New York following the release of minutes from the Federal Open Market Committee’s June meeting. The records revealed an emerging divide among policymakers that is being driven largely by differing expectations for how tariffs might affect inflation.

New rate projections released following the gathering showed 10 of 19 officials expected at least two rate cuts by year’s end. Seven policymakers, however, projected no cuts at all in 2025, while two projected one cut. Higher borrowing costs tend to pose a headwind for non-yielding gold.

Meanwhile, US President Donald Trump continued to unveil new rounds of tariff demand letters on Wednesday with levies set to hit in August on imported goods from partners who fail to reach agreements with the US. Trump’s move to postpone all “Liberation Day” duties eased some fears about a worst-case-scenario for global trade this week, denting haven demand for gold.

The delay allayed some concerns over the economic impact of the tariffs, though the US president also signaled substantial new rates on imports of copper and pharmaceuticals. If those materialize, investors could again flock to gold’s safety.

The precious metal has rallied by about 25% this year, setting a record in April, as Trump’s efforts to overhaul trade policies stoked uncertainty, driving investors to seek safety in gold. The advance has been supported by buying from central banks, with China announcing an eighth straight month of purchases earlier this week.

Spot gold climbed 0.3% to $3,311.25 an ounce as of 2:43 p.m. in New York. The Bloomberg Dollar Spot Index was little changed. Silver and platinum declined while palladium edged higher.

--With assistance from Sybilla Gross and Jack Ryan.