Gold prices were little changed on Thursday (July 10) as a stronger U.S. dollar offset the impact of U.S. President Donald Trump's latest tariffs, prompting buying by investors seeking protection from geopolitical risks.

Spot gold rose 0.1% to $3,317.44 an ounce at 1:50 PM ET (17:50 GMT). U.S. gold futures closed 0.1% higher at $3,325.7. The U.S. dollar index rose 0.2%. Gold tends to lose traction when the U.S. dollar strengthens, as it becomes more expensive for investors holding other currencies.

"Unless there's a major geopolitical escalation, I don't see gold breaking above $3,400. In the short term, I think gold will remain within that range," said Daniel Pavilonis, senior market strategist at RJO Futures. Trump launched a further tariff offensive on Wednesday, announcing a new 50% tariff on US copper imports and a 50% duty on Brazilian goods, both set to take effect on August 1.

There is "increasing appeal for gold among emerging markets, which see the metal's unbiased quality as attractive in a world weighed down by persistent geopolitical risks," said Paul Wong, market strategist at Sprott Asset Management, in a note.

The minutes of the Federal Reserve's June meeting showed that only "a few" officials felt interest rates could be lowered as soon as this month, while most policymakers remained concerned about the inflationary pressures they expect tariffs to create.

On the data front, the number of Americans filing for unemployment benefits unexpectedly fell last week, suggesting that companies may be retaining employees despite other indications of a weakening labor market.

Among other metals, spot silver rose 1.5% to $36.87 an ounce. "Breaking the $35 level increases the possibility of hitting the $40 target," Wong said.

Platinum rose 0.5% to $1,353.55. Palladium rose 3.9% to $1,148.43, after hitting its highest level since July 3. (alg)

Source: Reuters