Feb 26 (Reuters) - Gold prices held steady on Wednesday following a 2% decline in the previous session, while investors focused on U.S. President Donald Trump's tariff plans, which have raised concerns about a trade war.
Spot gold was little changed at $2,912.69 an ounce, by 1120 GMT, after hitting a more than one-week low on Tuesday. Trump's trade policies, seen as inflationary and with potential to spark tiffs with trade partners, saw safe-haven gold hitting a record high of $2,956.15 on Monday.
U.S. gold futures rose 0.3% to $2,926.70.
"The sharp correction in gold followed equities and bitcoin lower, but the bullion market saw some good bargain-hunting on the lows and unlike other asset classes, recovered its composure," independent analyst Ross Norman said.
The dip in prices is "likely to stimulate good physical offtake and provide an entry point for those that may have missed the bull run," he added.
Wall Street's main indexes touched a one-month low on Tuesday and bitcoin slumped 5.6%.
Trump opened yet another front on Tuesday in his assault on global trade norms, ordering a probe into potential new tariffs on copper imports.
Rising price pressures due to tariffs could force the Federal Reserve to keep interest rates higher. Bullion is a preferred hedge against uncertainty and inflation, but higher rates can reduce its appeal as it yields no interest.
Focus was also on the U.S. Personal Consumption Expenditures (PCE) report, the Fed's preferred inflation gauge, due on Friday.
The recent gains, which took gold within striking distance of $3,000, appeared to run out of steam, suggesting some traders had taken the opportunity to lock in profits, Frank Watson, market analyst at Kinesis Money, said in a note.
"Central bank behaviour will be key to gold's fortunes, as they have been an important element for demand in recent years."
Spot silver gained 0.1% to $31.77, platinum rose 0.9% to $974.86 and palladium added 1.6% to $942.29.
Reporting by Anjana Anil in Bengaluru, additional reporting by Ashitha Shivaprasad and Sarah Qureshi; Editing by Shreya Biswas
