Gold prices edged higher on Thursday, helped by a slight retreat in the dollar and bond yields, while investors kept a close tab on trade negotiations as U.S. President Donald Trump broadened his tariff war.
Spot gold rose 0.3% to $3,322.46 per ounce by 0157 GMT. U.S. gold futures were up 0.3% at $3,331.
Trump launched his global tariff assault into overdrive 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.
Trump also issued tariff notices for seven minor trading partners on Thursday, adding to 14 others issued earlier in the week, including South Korea and Japan, with 25% levies set to take effect on August 1 unless agreements are reached.
Meanwhile, Trump said trade talks have been going well with China and the European Union, which is the biggest bilateral trading partner of the U.S.
“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.
The U.S. dollar index edged down 0.3%, while the yield on benchmark 10-year U.S. Treasury notes retreated from a three-week high.
Lower yields reduce the opportunity cost of holding non-yielding bullion, while a weaker dollar makes gold cheaper for holders of other currencies.
Minutes of the Federal Reserve’s June 17-18 meeting showed that only “a couple” of Fed officials believed interest rate cuts could happen as early as this month, with most favouring reductions later this year due to inflation concerns tied to Trump’s tariff policies.
The Federal Open Market Committee unanimously voted to hold rates steady at its June meeting, with the next policy meeting scheduled for July 29-30.
Spot silver edged up 0.2% to $36.41 per ounce, platinum fell 0.3% to $1,343.22 and palladium inched up 0.1% to $1,106.25.
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