Spot Gold was poised to register a weekly loss, as support from US tariff-related uncertainty was overshadowed by a firmer US Dollar.
Yesterday US President Trump signed an executive order, under which the US imposed reciprocal tariffs of between 10% and 41% on imports from a number of countries prior to the August 1st trade deal deadline.
Levies on Canadian imports were raised to 35% from 25% for all products not covered by the US-Mexico-Canada trade agreement.
At the same time, Mexico received a 90-day reprieve to negotiate a broader deal.
“If various countries cannot renegotiate these tariff rates lower, we could see prices move higher again if trade tensions increase,” Marex analyst Edward Meir was quoted as saying by Reuters.
The US Dollar Index held close to a two-month high and was last down 0.13% to 99.922. The greenback was underpinned by the Federal Reserve’s hawkish stance.
The Fed kept its federal funds rate target range without change at 4.25%-4.50% at its July meeting, in line with market consensus.
Fed Chair Jerome Powell said the central bank had not decided about September, when many were expecting the first rate cut of the year to occur.
Meanwhile, investors braced for the US Non-Farm Payrolls report later in the day for more insight into macroeconomic conditions and the Fed’s future interest rate path.
Spot Gold was last down 0.03% on the day to trade at $3,289.14 per troy ounce.
The precious metal has lost 1.33% so far this week.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
