Investing.com – Gold prices extended gains on Tuesday, as the U.S. dollar pushed lower amid growing uncertainty over potential U.S. tariffs on steel and aluminum imports.
Comex were up 0.81% at $1,333.6 a troy ounce by 08:30 a.m. ET (12:30 GMT).
Investors remained cautious as U.S. President Donald Trump faced growing pressure to pull back from proposed steel and aluminium tariffs.
Trump reacted by , saying he would lift planned tariffs on steel imports if they signed a new version of the North American Free Trade Agreement, or NAFTA.
The tariffs, announced last week, had sparked concerns over a potential trade war, which would have a negative impact on the U.S. economy.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.41% at 89.58, the lowest since February 26.
Gold is sensitive to moves in both U.S. rates and the dollar. A weaker dollar makes gold less expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Markets were also jittery amid concerns over Sunday’s inconclusive Italian election results.
With no party winning an outright majority, Italy is likely to be plunged into a period of political instability, which could stall progress on economic reforms in the euro zone’s third-largest economy.
In other news, North Korea said on Tuesday that regarding denuclearization and normalizing ties.
Elsewhere on the Comex, jumped 1.33% to $16.64 a troy ounce.
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Source: Investing.com
