Gold prices edged higher on Tuesday, as sentiment on the greenback remained vulnerable amid uncertainty surrounding U.S. tariffs on steel and aluminum imports as well as elections in Italy.
Comex gold futures were up 0.20% at $1,322.5 a troy ounce by 02:40 a.m. ET (06:40 GMT).
Investors were cautious as U.S. President Donald Trump faced growing pressure to pull back from proposed steel and aluminium tariffs.
The tariffs, announced last week, had sparked concerns over a potential trade war, which would have a negative impact on the U.S. economy.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 89.97.
Gold is sensitive to moves in both U.S. rates and the dollar. A weaker dollar makes gold less expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Markets were also jittery as two anti-establishment leaders made early plans to govern Italy on Monday, a day after general elections ended in a hung parliament.
Elsewhere on the Comex, silver futures rose 0.23% to $16.44 a troy ounce.
