By Anjana Anil
(Reuters) – Gold prices retreated from a near three-month high on Thursday as the dollar ticked up, while focus remained on U.S. President Donald Trump’s policies.
Spot gold eased 0.4% 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.
U.S. gold futures shed 0.7% to $2,750.30.
The dollar index edged up 0.1%, making greenback-priced gold more expensive. [USD/]
“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 U.S. dollar index today and an uptick in U.S. 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 U.S. Treasury Note also rose, reducing non-yielding bullion’s appeal.
The U.S. Federal Reserve will meet on Jan. 28-29. Traders see a 96% chance that the Fed will keep interest rates unchanged, according to the CME Group’s FedWatch Tool.
Spot silver dropped 1.9% to $30.19 per ounce, while platinum shed 0.6% 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% to $992.33.
(Reporting by Anjana Anil in Bengaluru; Editing by Shounak Dasgupta)
