Feb 19 (Reuters) - Gold prices rose to a record high on Wednesday on safe-haven demand following U.S. President Donald Trump's latest tariff threats, while investors awaited minutes of the Federal Reserve's January policy meeting later in the day.
Spot gold was flat at $2,934.49 an ounce as of 9:39 a.m. ET (1439 GMT) after surging to an all-time high of $2,946.85/oz earlier in the session. Prices scaled a record for the ninth time this year.
U.S. gold futures rose 0.1% to $2,952.10.
"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.
The U.S. president 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 Trump’s recent move to impose a 10% tariff on Chinese imports and a 25% tariff on steel and aluminum 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.
U.S. Federal Reserve 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 0.7% to $32.65 an ounce, which aims to challenge a 10-year high.
Platinum declined 1.8% to $970.15 and palladium eased 0.9% to $978.11.
"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; Editing by Shreya Biswas
