Gold steadies as firmer dollar counters trade tensions
Gold prices were little changed on Thursday as a stronger U.S. dollar offset the impact of U.S. President Donald Trump's latest tariffs in driving buying by investors seeking shelter from geopolitical risk.
Spot gold was up 0.1% to $3,318.39 per ounce by 10:13 am ET (1413 GMT). U.S. gold futures gained 0.2% to $3,327.80.
The U.S. dollar index drifted 0.2% higher. Gold tends to lose appeal when the U.S. dollar strengthens, as it becomes more expensive for investors holding other currencies.
"Unless there’s a major geopolitical escalation, I don’t see gold breaking above $3,400. In the near term, I think gold will stay in a range," said Daniel Pavilonis, senior market strategist at RJO Futures.
Trump launched a further tariff assault on Wednesday, announcing a new 50% tariff on U.S. copper imports and a 50% duty on goods from Brazil, both to start on August 1.
There is a "rising appeal for gold among emerging economy nations, which see the metal’s counterparty-free qualities as attractive in a world burdened by persistent geopolitical risk," Paul Wong, Market Strategist at Sprott Asset Management said in a note.
Minutes from the Federal Reserve's June meeting showed only "a couple" of officials felt interest rates could be reduced as soon as this month, with most policymakers remaining worried about the inflationary pressure they expect from tariffs.
On the data front, the number of Americans filing applications for jobless benefits unexpectedly fell last week, suggesting employers may be retaining workers despite other indications of a cooling labor market.
Among other metals, spot silver rose 0.7% to $36.58 per ounce.
Source: Reuters
