- Trump announces 35% tariff on Canada
- U.S. weekly jobless claims slip to 7-week low
- U.S. dollar index heads for best week in nearly 5 months
July 11 (Reuters) - Gold rose on Friday after U.S. President Donald Trump announced new tariffs on Canada and broader tariff threats against other trading partners, but gains were capped by a stronger dollar amid mounting signs of turmoil in global trade landscape.
Spot gold rose 0.4% to $3,336.85 per ounce, as of 0612 GMT. U.S. gold futures added 0.7% to $3,349.10.
On Thursday, Trump said U.S. would impose a 35% tariff on imports from Canada, and planned to impose blanket duties of 15% or 20% on most other trade partners.
This follows Wednesday's announcement of a 50% tariff on U.S. copper imports and a similar levy on goods from Brazil, along with tariff notifications sent earlier to other trading partners.
All newly announced tariffs will take effect on August 1.
"Trump's latest tariff moves against Canada gave some vigour to the gold price, with safe-haven demand ticking higher in response... the rise in gold may not be sustained if investors think that trade negotiations will lower the tariff temperature," KCM Trade Chief Market Analyst Tim Waterer said.
The dollar index was set for its best week since February 28, making gold more expensive for international buyers.
The dollar's rise in unison with gold probably limited the precious metal's gains, Waterer said.
Weekly jobless claims in the U.S. fell unexpectedly to a seven-week low, indicating stable employment levels despite a cooling labour market and signalling no urgency for the Federal Reserve to resume cutting interest rates.
Gold, often considered as a safe-haven asset during economic uncertainties, tends to do well in a low-interest-rate environment.
Demand for physical gold remained sluggish this week across major Asian markets as price volatility weighed on sentiment.
Spot silver gained 1% at $37.41 per ounce, platinum fell 0.3% to $1,356.83 and palladium rose 0.3% to $1,145.72.
Reporting by Anmol Choubey in Bengaluru; Editing by Sumana Nandy and Rashmi Aich
Source: Reuters