BENGALURU- Gold prices eased on Thursday from a near three-month peak, as the dollar gained, while investors awaited further direction from US President Donald Trump’s administration regarding trade policies.
Spot gold eased 0.1 percent to $2,751.87 per ounce. Prices rose to $2,763.43 on Wednesday, their highest since Oct. 31 when they hit a record high of $2,790.15.
US gold futures shed 0.3 percent to $2,761.70.
“It’s just a technical pullback because the dollar has been taking back on $108 level, triggering some profit-booking, but the undertone for gold is expected to be positive,” said Ajay Kedia, director at Kedia Commodities in Mumbai.
Trump has mooted levies of around 25 percent on Mexico and Canada and 10 percent tariff on China from Feb. 1. He also promised duties on European imports, without elaborating further.
“How Trump’s policies impact gold is whether the combination of tax cuts, deregulation, tariffs, and deportation will amount to a strong inflationary push,” said Ilya Spivak, head of global macro at Tastylive.
“If so, Fed rate cuts will be limited and gold is likely to struggle.”