Gold prices dropped, remaining near a six-month low on Wednesday as the US dollar hovered around 11 month peaks but was offset by festering global trade tensions, while platinum hit a 2-1/2-year trough. Rising US interest rates also pressured bullion.
Spot gold lost 0.2 percent at $1,272.44 by 1:36 p.m. EDT (1736 GMT). US gold futures for August delivery settled down $4.10, or 0.3 percent, at $1,274.50 per ounce. Trade tensions between the United States and China are showing no signs of easing. On Tuesday, a White House trade adviser said Beijing had underestimated the US president's resolve to impose more tariffs.
That followed Washington threatening to impose tariffs on $200 billion of Chinese goods and Beijing saying it was raising tariffs on $50 billion of US goods.
Gold, seen as a safe haven asset, usually gains from geopolitical or economic tensions, but has struggled this time around because the dollar has risen strongly, making dollar-priced gold costlier for non-US investors.
"This environment we've had with interest higher rates and a higher US dollar has kind of halted the rise of gold at least for the short term," said Will Rhind, CEO of GraniteShares.
Platinum increased 0.7 percent at $873.20 an ounce. Earlier in the session, it touched $854.50, its lowest since February 3, 2016.
Silver gained 0.3 percent at $16.31 an ounce. Palladium lost 0.1 percent at $965.60 per ounce, having hit a one-month low of $960.25.