Gold prices rebounded on Thursday from a one-month low hit in the previous session, as trade uncertainty stemming from fresh US tariff announcements lifted the bullion’s appeal, even as expectations of a US rate cut in September eased.
Spot gold was up 0.6 percent at $3,295.37 per ounce, as of 0424 GMT. Bullion hit its lowest level since June 30 at $3,267.79 on Wednesday.
US gold futures fell 0.2 percent to $3,289.30.
“Gold at sub-$3,300 levels has attracted buying interest from traders as a value play, particularly with the prevailing economic uncertainty, which goes hand in hand with US President Donald Trump’s secondary tariff threats,” KCM Trade Chief Market Analyst Tim Waterer said.
Trump on Wednesday issued a blitz of tariff announcements, ranging from changes to previously threatened levies on imports of copper and on goods from Brazil to ending an exemption for small-value shipments from overseas.
Trump announced a deal with South Korea involving a 15 percent US tariff on imports from the country, while confirming ongoing negotiations with India after declaring a 25 percent tariff on Indian goods effective Friday. He also expressed optimism about trade talks with China, stating he expects a fair deal to be reached.
Meanwhile, the US Federal Reserve held interest rates steady on Wednesday, while Chair Jerome Powell’s comments dampened expectations of rate cuts in September.
