Gold prices slipped on Wednesday after hitting a one-week high earlier as the dollar weakened and equities dropped after US President Donald Trump said he would push ahead with punitive tariffs on imports, rekindling fears of a potential trade war. Spot gold was down 0.1 percent at $1,333.15 per ounce as of 0747 GMT, after touching $1,340.42, its highest since Feb. 26, earlier in the session.
US gold futures for April delivery fell 0.07 percent to $1,334.20 per ounce. "Volatility in risk assets, and concerns around the implications of Trump's tariff rhetoric has helped propel gold higher," said Jordan Eliseo, chief economist at gold trader ABC Bullion.
Traders fear the departure of Cohn, a former Wall Street banker, would embolden protectionist forces in the US administration as Trump tries to impose hefty tariffs.
"Prices will remain firmly supported ... from Cohn's departure as the tariff gambit hits the market again with blunt force," said Stephen Innes, APAC trading head at OANDA.
Spot gold may fall to $1,327 per ounce following its failure to break above $1,342, according to Reuters technical analyst Wang Tao.
Comments
Comments are closed.