Gold prices edged higher on Thursday, as investors remained cautious ahead of an expected clarification by U.S. President Donald Trump on his proposed tariffs.
Comex gold futures were up 0.11% at $1,329.0 a troy ounce by 0205 a.m. ET (06:05 GMT).
U.S. President Donald Trump was expected to give more details later Thursday on his plans to impose tariffs of 25% on steel imports and 10% on aluminum imports in a recommitment to his nationalist trade agenda.
Sentiment waned after Trump’s economic adviser Gary Cohn announced his resignation on Tuesday. The decision was said to have been made following a disgreement between Cohn and the U.S. President over the import tariffs.
Traders fear that the proposed tariffs could spark inflation and provoke retaliation from U.S. trade partners. Major holders of U.S. Treasuries, including China and the European Union, could reduce their holdings of U.S. assets in response.
The White House said late Wednesday that Canada, Mexico and possibly other countries may be exempted at least for a while from the proposed tariffs.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 89.60, just off Wednesday’s two-week lows of 89.36.
Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.
Elsewhere on the Comex, silver futures gained 0.34% to $16.56 a troy ounce.
