(MENAFN- Khaleej Times)
Gold prices retreated from a near three-month high on Thursday as the dollar ticked up, while focus remained on US President Donald Trump's policies.
Spot gold eased 0.4 per cent to $2,744.26 per ounce by 10 a.m. ET (1500 GMT). Prices hit a more than three-month peak on Wednesday, $26.72 shy of their all-time high of $2,790.15 in October.
US gold futures shed 0.7 per cent to $2,750.30.
The dollar index edged up 0.1 per cent, making greenback-priced gold more expensive.
“With a stronger dollar and Treasury yields, it's hard for gold to continue to move higher,” said Bob Haberkorn, senior market strategist at RJO Futures.
Uncertainty about Trump's trade plans prevailed as he said tariffs on imports from Canada, Mexico, China and the European Union could be announced on Feb. 1, although analysts expect April 1 to be the date when major tariff plans will be unveiled.
Lack of clarity about future policies has led to market participants flocking to safe-haven assets such as gold to hedge against volatility.
“A rebound in the US dollar index today and an uptick in US Treasury yields are bearish outside-market forces for the precious metals on this day,” Jim Wyckoff, senior market analyst at Kitco Metals, said.
Yield on the 10-year US Treasury Note also rose, reducing non-yielding bullion's appeal.
The US Federal Reserve will meet on Jan. 28-29. Traders see a 96 per cent chance that the Fed will keep interest rates unchanged, according to the CME Group's FedWatch Tool.
Spot silver dropped 1.9 per cent to $30.19 per ounce, while platinum shed 0.6 per cent to $940.30.
Trump threatened Russia“and other participating countries” with taxes, tariffs and sanctions if a deal to end the war in Ukraine is not struck soon.
Russia is the world's largest palladium producer and a major supplier of the metal to the United States.
Palladium added 1.5 per cent to $992.33.
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