Gold prices edged higher in Asian trading on Thursday, extending gains from Wednesday’s rebound, as market anxiety over escalating United States trade tensions and falling Treasury yields pressured the U.S. dollar.
By 3:30 pm AEST (5:30 am GMT), spot gold was up US$9.64, or 0.3%, to US$3,323.29 per ounce, building on its recovery from a weekly low of US$3,283.
The precious metal staged a modest comeback during Wednesday’s U.S. session after the US dollar and Treasury yields retreated from recent highs.
The dollar remains under pressure amid ongoing trade uncertainty, with safe-haven demand for gold picking up.
U.S. President Donald Trump intensified global trade friction on Wednesday, issuing fresh tariff notices to seven smaller trading partners.
The new duties include a 20% tariff on imports from the Philippines, 30% on goods from Sri Lanka, Algeria, Iraq, and Libya, and 25% on products from Brunei and Moldova.
Trump also announced a 50% tariff on copper imports and a similar 50% levy on goods from Brazil, effective from 1 August.
Meanwhile, the Federal Reserve’s June meeting minutes showed that while most policymakers expect rate cuts later this year, only “a couple” saw scope for reductions as soon as July.
“The proposed tariffs on copper also raised some concerns that the precious metal market may get caught up,” ANZ analysts wrote. “While that’s unlikely for gold and silver, levies on industrial-type metals such as platinum and palladium cannot be ruled out.”
