Safe-haven gold drifts up on geopolitical woes
Safe-haven gold prices rose on Wednesday, bolstered by persistent conflict in the Middle East and uncertainty over tariffs, while softer U.S. producer prices also added support.
Spot gold rose 0.2% to $3,328.14 per ounce, as of 0937 a.m. EDT (1337 GMT). U.S. gold futures edged 0.1% lower to $3,333.60.
"We still have geopolitical elements that are at the front burner of the marketplace. With Israeli strikes and U.S. being more hawkish on trade tariffs, there is a little bit more uncertainty to the marketplace," said Jim Wyckoff, a senior analyst at Kitco Metals.
"I expect gold to trade between the $3,250 and $3,476 in the near-term."
In the Middle East, an Israeli airstrike hit next to the presidential palace in Syria's capital Damascus, according to a Reuters witness.
On the trade front, U.S. President Donald Trump on Tuesday said the U.S. would impose a 19% tariff on goods from Indonesia. While, the European Commission prepared to target $84.1 billion worth of U.S. goods for possible tariffs if trade talks with Washington fail after Trump threatened last week to impose 30% tariffs on imports from the EU last week.
Also, adding support to gold was data that showed, U.S. producer prices were unexpectedly unchanged in June from a 0.3% rise in May.
It follows Tuesday's data that showed overall consumer prices rose 0.3% in June, up from 0.1% in May, signalling that the Federal Reserve may continue to exercise caution before cutting interest rates.
Gold thrives during uncertain times and a low-interest rate environment boosts it further.
Elsewhere, India's gold imports in June fell 40% from a year ago to their lowest level in more than two years, as elevated prices sapped demand, a government and two industry officials told Reuters.
Spot silver was flat at $37.73 per ounce, hovering near a 14-year high logged on Monday.
Platinum gained 1.6% to $1,393.51 and palladium rose 1.8% to $1,227.75.
Source: Reuters
