Investing.com – Gold prices steadied on Thursday as investors await more details on the U.S. tariffs plan.
Gold futures for April delivery on the Comex division of the New York Mercantile Exchange gained $0.7, or 0.05%, to $1,328.20 a troy ounce by 12:15am ET.
Reports that U.S. president Trump may exempt Canada, Mexico from tariffs offset safe-haven demand and put pressure on the precious metal earlier in the day, as White House spokeswoman Sarah Sanders told reporters that the expected U.S. tariffs on steel and aluminium imports may exclude Canada, Mexico and a few of other countries.
The dollar slightly recovered following the development. The US dollar index that tracks the greenback against a basket of six major currencies gained 0.03% to 89.59.
An economic report that showed the private sector labor market remained robust was also cited as supportive for the dollar.
Gold is sensitive to moves higher in the U.S. dollar – a stronger dollar makes gold more expensive for holders of foreign currency, hence reduces investor demand for the precious metal.
Meanwhile, investors are also awaiting U.S. non-farm payroll data due on Friday for more clarity on the pace of U.S rate hikes.
Asian stocks advanced in morning trade on Thursday as worries surrounding a trade war dissipated, with Hong Kong’s Hang Seng Index leading the gain and trading 1.4% higher.