Gold rose, reversing some of the previous session's losses as traders reduced their bets on a September interest rate cut from the US Federal Reserve.

Bullion rose 0.7% to trade near $3,299 an ounce, following a decline in the dollar after Fed Chairman Jerome Powell announced that interest rates would be held steady.

"There's still a lot of uncertainty to be resolved," Powell said in a post-meeting press conference. "It doesn't feel like we're that close to the end of that process." Traders reduced the probability of a September rate cut to less than 50% after Powell's remarks. Higher borrowing costs typically weigh on gold, which does not yield interest.

Trump's tariff agenda and concerns about a global trade war have been the main catalysts for gold's surge for about a quarter this year, including a record high above $3,500 an ounce in April, while geopolitical conflicts have fueled demand for safe-haven assets.

The US president surprised the metals world by exempting the most traded type of copper from the much-anticipated import tariffs. He also threatened to impose tariffs of at least 25% on India starting Friday, when the trade agreement deadline expires.

Along with trade talks, investors are also shifting their focus to the US July employment figures released on Friday, which are expected to show slowing job growth and rising unemployment. The Bloomberg Dollar Spot Index was little changed. Silver and platinum weakened, while palladium strengthened. (alg)

Source: Bloomberg