Market News
Gold at over one-week low as higher dollar, yields dent appeal - REUTERS
By Brijesh Patel and Anushree Mukherjee
(Reuters) - Gold prices extended their fall to a more than one-week low on Wednesday, as investors favoured the dollar after U.S. President Donald Trump's latest tariff threats reignited fears of a global trade war.
Spot gold was down 0.3% at $3,289.36 per ounce, as of 1014 GMT, its lowest level since June 30.
U.S. gold futures fell 0.6% to $3,297.10.
"The dollar has stabilised a little bit, and bond yields have risen as well, which kind of reduces the appeal of low-yielding assets like the Japanese yen, gold," said Fawad Razaqzada, market analyst at City Index and FOREX.com.
The U.S. dollar index was steady after hitting a two-week high in the previous session, while the yield on benchmark 10-year U.S. Treasury notes hovered near a three-week high, denting non-yielding bullion's appeal. [USD/] [US/]
Trump said he would impose a 50% tariff on imported copper and introduce long-threatened levies on semiconductors and pharmaceuticals.
Trump reiterated his threat of 10% tariffs on BRICS nations on Tuesday, a day after notifying 14 countries, including Japan and South Korea, of tariff increases set to take effect on August 1.
Trump said on Tuesday that trade talks have been going well with the European Union and China, though he also said he was only days away from sending a tariff letter to the EU, keeping open the threat of elevated duties.
Razaqzada said he expected gold in the near term to continue moving sideways. On the downside, he pegged support at $3,250 and on the upside, resistance was around $3,300.
Investors await minutes from the U.S. Federal Reserve's latest meeting, due later in the day, for guidance on any future interest rate cuts.
Trump has repeatedly criticised Fed Chair Jerome Powell for not cutting interest rates and has floated the idea of naming his successor soon.
Spot silver fell 0.5% to $36.59 per ounce, platinum shed 1% to $1,345.64 and palladium lost 2.2% to $1,086.30.
(Reporting by Brijesh Patel in Bengaluru, additional reporting by Ishaan Arora; Editing by Sharon Singleton and Barbara Lewis)
