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Gold Prices Slip Lower Despite U.S. Data

Published 03/08/2018, 08:49 AM
© Reuters.  Gold prices pulls away from session highs
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Investing.com - Gold prices slipped lower on Thursday, as the dollar showed little reaction to downbeat U.S. data amid sustained uncertainty over U.S. President Donald Trump's proposed tariffs.

Comex gold futures were down 0.14% at $1,325.70 a troy ounce by 08:40 a.m. ET (12:40 GMT), after rising to 1,329.8 earlier in the day.

The U.S. Department of Labor reported on Thursday that initial jobless claims increased by 21,000 in the week ending March 3 to 231,000, compared to expectations for a 10,000 rise to 220,000.

Meanwhile, 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.

Market 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 89.54, 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 were steady at $16.49 a troy ounce.

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