Gold prices edged higher on Thursday, driven by a weaker dollar and safe-haven demand, amid uncertainty over U.S. tariff policy and U.S.-Iran talks.
By 0258 GMT, spot gold was up 0.3% at $5,183.85 an ounce. Bullion hit a more than three-week high on Tuesday.
US gold futures for April delivery fell 0.5% to $5,200.50.
“Price trends reflect new policy (tariff) uncertainty, geopolitical concerns and dollar weakness,” said Christopher Wong, strategist at OCBC.
“Two-way consolidation remains likely for the foreseeable future as markets digest geopolitical (news), dollar movements, surprise tariffs, and Fed policy uncertainty.”
The dollar started the day weaker as Nvidia’s better-than-expected earnings boosted investor confidence and the market awaited details on the latest U.S. tariffs on imports of foreign goods.
A weaker dollar makes dollar-denominated gold cheaper for holders of other currencies.
U.S. tariffs on some countries will increase from a new 10% to more than 15%, U.S. Trade Representative Jamison Greer said Wednesday, without mentioning specific trading partners or providing further details.
The market currently expects the U.S. Federal Reserve to cut interest rates by 25 basis points three times this year, according to CME’s FedWatch tool.
Investors were awaiting weekly unemployment claims data to be released later in the day for further clues about the Fed’s monetary policy direction.
Iran and the United States are scheduled to hold the latest round of talks in Geneva on Thursday aimed at resolving their long-standing nuclear dispute and averting a new U.S. attack on Iran after a major military buildup.
Meanwhile, Deutsche Bank noted that white metals and gold are once again outperforming. “This confirms our year-end silver price forecast ($100/oz) based on a gold-silver ratio of 60,” the bank said in a note dated Wednesday.
Spot silver fell 0.6% to $88.84 an ounce after rising to a three-week high on Wednesday.
Spot platinum fell 0.5% to $2,274.16 an ounce and palladium fell 1.4% to $1,770.05. Both metals hit three-week highs in the previous session.
(Reporting by Ishaan Arora; Editing by Subhranshu Sahu)
