Gold Edges Up on Dip Buying, Trade War Worries Remain
Gold edged up after falling in the previous session, boosted by renewed concerns over the impact of U.S. President Donald Trump’s trade war.
The precious metal rose as much as 0.6% to $3,372 an ounce, following a 0.8% drop on Tuesday, after Trump signed a directive to double tariffs on steel and aluminum to 50%, while trade relations with China and the European Union deteriorated again. That outweighed a rise in U.S. job openings that had boosted sentiment about the resilience of the American economy.
Bullion is up about 28% this year, less than $200 below an all-time high hit in April. That has been supported by safe-haven demand as investors have moved out of assets exposed to a widening trade war. Central banks are also key movers, with their buying expected to continue amid geopolitical tensions and concerns about excessive dollar exposure.
China this week claimed the U.S. has “seriously undermined” a recent trade truce reached in Geneva, with Foreign Minister Wang Yi using his first meeting with new U.S. Ambassador David Perdue to urge Washington to put relations on the “right track.” Meanwhile, the EU warned of fresh countermeasures if the U.S. follows through on its tariff threats.
Spot gold rose 0.3% to $3,364.29 an ounce as of 11:16 a.m. in Singapore. The Bloomberg Dollar Spot Index fell 0.1%, following a 0.4% gain in the previous session. Silver and platinum rose, while palladium fell.
Looking ahead, U.S. jobs indicators including the May jobs report are due on Friday, which could help guide Federal Reserve monetary policy. Lower interest rates are generally positive for bullion, which does not pay interest.
Source: Bloomberg
