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Trump unveils 25% tariffs on Japan, South Korea

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Higher tariff rates to take effect from August 1

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Fed to release minutes from latest meeting on Wednesday

(Updates for Asia mid-session trading)

By Anmol Choubey

July 8 (Reuters) - Gold prices were little changed on

Tuesday, caught between safe-haven demand following U.S.

President Donald Trump's new tariff proposals for Japan, South

Korea, and others, and rising Treasury yields that capped any

upside momentum.

Spot gold eased 0.1% to $3,330.71 per ounce as of

0434 GMT. U.S. gold futures was steady at $3,340.70.

On Monday, Trump began telling trade partners that sharply

higher U.S. tariffs would start on August 1, marking a new phase

in the trade war he launched earlier this year, with tariffs on

goods from Japan and South Korea set at 25%.

The August 1 deadline for implementing the tariffs was firm,

Trump said, adding that he would consider extensions if

countries made proposals.

"Reciprocal tariffs" were capped at 10% until July 9 to

allow for negotiations, but only agreements with Britain and

Vietnam have been reached so far.

"Traders seem relatively unfazed by Trump's tariff letters,

and with safe-haven demand largely contained at this point, gold

is still just biding its time, waiting for a topside breakout to

potentially occur," KCM Trade Chief Market Analyst Tim Waterer

said.

The higher bond yields and resilience in Asian markets to

tariff developments are curbing gold's immediate upside

potential, Waterer added.

The yield on benchmark U.S. 10-year notes

hovered near a two-week high. Higher yields increase the

opportunity cost of holding non-yielding bullion.

Meanwhile, China warned the Trump administration against

reigniting trade tensions by restoring tariffs on its goods next

month, and threatened to retaliate against nations that strike

deals with the U.S. to cut China out of supply chains.

Trump's tariffs have stoked inflation fears, further

complicating the Federal Reserve's path to lower interest rates.

The minutes of the Fed's June meeting, due on Wednesday,

should offer more clues into the central bank's policy outlook.

Spot silver added 0.1% to $36.77 per ounce, platinum

fell 0.2% to $1,367.34 and palladium rose 0.2% to

$1,113.06.

(Reporting by Anmol Choubey in Bengaluru; Editing by Sumana

Nandy and Subhranshu Sahu)