Investing.com – Gold prices were pinned to the psychologically important $1,300 level as gains on the back of a weaker dollar were offset somewhat by easing safe-haven demand as Italian political turmoil subsided.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange fell by $1.50 or 0.12%, to $1,300.00 a troy ounce.
Gold prices continued to range trade Thursday as traders mulled numerous geopolitical events including the progress of talks to form Italy’s coalition that could trigger sharp moves in the precious metal.
The U.S. said steel and aluminum tariffs on a host of trading partners including the European Union would get underway on Friday.
The EU vowed Thursday to retaliate with countermeasures, which could include tariffs on numerous U.S. goods including cranberries, jeans and orange juice.
In Italy, meanwhile, political turmoil abated amid reports Italy’s populist parties were nearing a solution to their differences, paving the way for the country to form a new government and avert a snap election.
As well as political uncertainty in Italy, political turmoil in Spain was also on the agenda as Prime Minister Mariano Rajoy faced a vote of no confidence due Friday.
Gold was also supported by dollar weakness as the greenback struggled to make meaningful gains after bouncing off session lows on mostly positive economic data.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.01% to 94.05.
A weaker dollar makes gold cheaper for holders of foreign currency, raising demand for the yellow metal.
In other precious metal trade, silver futures fell 0.57% to $16.45 a troy ounce, while platinum futures fell 0.06% to $908.00 an ounce.
Copper fell 0.36% to $3.06.