Gold gains as 'dollar negative' sentiments take hold
Gold prices rose on Thursday, supported by a pullback in the dollar and the prospect of U.S. interest rate cuts later in the year, while investors awaited more details on U.S. President Donald Trump's trade policy.
Spot gold was up 0.5% to $3,328.23 per ounce by 0916 GMT. U.S. gold futures gained 0.5% to $3,336.90.
"The passing of the One Big Beautiful Bill, unsettling trade (policies) and rate-cut expectations should be 'dollar negative' kind of events... gold should be favoured in that environment," said WisdomTree commodities strategist Nitesh Shah.
The U.S. dollar index eased 0.2% against its rivals, making gold less expensive for other currency holders.
Trump escalated his tariff campaign on Wednesday with a 50% levy on copper imports and a 50% duty on goods from Brazil, both effective on August 1.
Trump also issued tariff notices to seven minor trading partners, adding to the 14 issued earlier in the week, also set to take effect on August 1 unless agreements are reached.
However, financial markets have largely shrugged off U.S. President Donald Trump's latest tariff salvos with global stocks advancing on Thursday.
"The market impact of tariffs seems to lessen with each new headline. Tariff fatigue is here, and traders need a new catalyst to awaken volatility from its lull," said Matt Simpson, a senior analyst at City Index.
Minutes of the Fed's June 17-18 meeting showed that only "a couple" of officials believed that rate cuts could happen this month, with most worried over inflation tied to Trump's tariff policies.
Non-yielding gold, often seen as a hedge against inflation and political uncertainty, benefits from lower interest rates.
The Federal Open Market Committee unanimously voted to hold rates steady at its June meeting. The next policy meeting is scheduled for July 29-30.
Spot silver rose 0.7% to $36.59 per ounce, platinum gained 0.9% to $1,359.65, and palladium climbed 1.2% to $1,117.93.
Source: Reuters
