[BENGALURU] Gold prices edged higher on Thursday (Jul 10) as US President Donald Trump’s latest tariff announcements kept markets cautious, with investors closely watching trade negotiations, while a slight pullback in the US dollar provided additional support.
Spot gold rose 0.2 per cent to US$3,321.04 per ounce, as at 0044 GMT. US gold futures were up 0.3 per cent at US$3,329.10.
The US dollar index edged down 0.3 per cent. A lower US dollar makes gold more affordable for overseas buyers.
On Wednesday, Trump turned his trade ire against Brazil, threatening Latin America’s largest economy with a punitive 50 per cent tariff on exports to the US and ordering an unfair trade practices investigation that could lead to even higher tariffs.
Trump issued tariff notices for seven minor trading partners on Thursday, adding to 14 earlier in the week, including 25 per cent levies including South Korea and Japan, effective Aug 1 unless trade agreements are reached before then.
Trump also announced on Wednesday a 50 per cent tariff on copper, saying on social media that it would be effective Aug 1.
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Meanwhile, Trump said trade talks have been going well with China and the European Union, which is the biggest bilateral trading partner of the US
Minutes from the Jun 17 to 18 meeting revealed that only “a couple” of Federal Reserve officials believed interest rate cuts could happen as early as this month. Most policymakers, however, expect rate reductions to be appropriate later this year, citing concerns over inflationary pressures stemming from Trump’s tariff policies.
The Federal Open Market Committee (FOMC) unanimously voted to hold rates steady at its June meeting, with the next policy meeting scheduled for Jul 29 to 30.
Spot silver edged up 0.2 per cent at US$36.41 per ounce, platinum fell 0.4 per cent to US$1,342.30 and palladium inched up 0.1 per cent to US$1,106.34. REUTERS
