July 10 (Reuters) - Gold prices edged higher on Thursday
as U.S. President Donald Trump's latest tariff announcements
kept markets cautious, with investors closely watching trade
negotiations, while a slight pullback in the dollar provided
additional support.
FUNDAMENTALS
* Spot gold rose 0.2% to $3,321.04 per ounce, as of
0044 GMT. U.S. gold futures were up 0.3% at $3,329.10.
* The U.S. dollar index edged down 0.3%. A lower
dollar makes gold more affordable for overseas buyers.
* On Wednesday, Trump turned his trade ire against Brazil,
threatening Latin America's largest economy with a punitive 50%
tariff on exports to the U.S. and ordering an unfair trade
practices investigation that could lead to even higher tariffs.
* Trump issued tariff notices for seven minor trading
partners on Thursday, adding to 14 earlier in the week,
including 25% levies including South Korea and Japan, effective
August 1 unless trade agreements are reached before then.
* Trump also announced on Wednesday a 50% tariff on copper,
saying on social media that it would be effective August 1.
* Meanwhile, Trump said trade talks have been going well
with China and the European Union, which is the biggest
bilateral trading partner of the U.S.
* Minutes from the June 17-18 meeting revealed that only "a
couple" of Federal Reserve officials believed interest rate cuts
could happen as early as this month. Most policymakers, however,
expect rate reductions to be appropriate later this year, citing
concerns over inflationary pressures stemming from Trump's
tariff policies.
* The Federal Open Market Committee (FOMC) unanimously voted
to hold rates steady at its June meeting, with the next policy
meeting scheduled for July 29-30.
* Spot silver edged up 0.2% at $36.41 per ounce,
platinum fell 0.4% to $1,342.30 and palladium
inched up 0.1% to $1,106.34.
DATA/EVENTS (GMT)
0600 Germany HICP Final YY June
0900 Germany, France, UK Overall Comprehensive Risk
Q3
1230 US Initial Jobless Claim 5 July, w/e
1430 US EIA-Nat Gas Chg Bcf 4 July, w/e
1430 US Nat Gas-EIA Implied Flow 4 July, w/e