By Brijesh Patel and Anushree Mukherjee
(Reuters) -Gold prices extended their fall to a more than one-week low on Wednesday, with investors favouring the dollar after U.S. President Donald Trump’s latest tariff threats raised fears of a global trade war.
Spot gold was down 0.4% at $3,285.92 per ounce, as of 0853 GMT, its lowest level since June 30.
U.S. gold futures fell 0.7% to $3,293.80.
“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 rose 0.2% 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 added he is only days away from sending a tariff letter to the EU.
In the near term, expect gold to continue moving sideways. On the downside, support comes in at $3,250. On the upside, resistance is seen around $3,300, Razaqzada said.
Investors now look forward to minutes from the U.S. Federal Reserve’s latest meeting, due later in the day, for hints of potential 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. /p>
Spot silver fell 0.8% to $36.48 per ounce, platinum shed 1% to $1,345.43 and palladium lost 2.5% to $1,082.76.
text_section_type=”notes”>Reuters Terminal users can see related news and prices by clicking on the codes in brackets: All precious metals headlines [GOL] Precious metals market reports [GOL/] European gold prices London Bullion Market Association New York Comex gold and silver New York platinum and palladium
(Reporting by Brijesh Patel in Bengaluru; Editing by Sharon Singleton)
