WASHINGTON (dpa-AFX) - Gold ticked higher on Thursday, driven by a dip in the dollar and bond yields as U.S. President Donald Trump intensified his tariff war strategy.
Spot gold rose half a percent to $3,330.18 per ounce in European trade, while U.S. gold futures were up half a percent at $3,337.62.
The U.S. dollar slipped from a two-week high versus major peers as investors reacted to the latest developments on the trade front and the latest FOMC meeting minutes.
After releasing tariff warning letters to seven additional countries on Wednesday, U.S. President Donald Trump raised the tariffs on Brazilian imports to 50 percent from 10 percent, effective August 1.
Trump tied the levy to Brazil's prosecution of former president Jair Bolsonaro over an alleged attempted coup following the 2022 election, when Bolsonaro was defeated by President Luiz Inacio Lula da Silva.
'Any unilateral tariff increases will be addressed in light of the Brazilian Law of Economic Reciprocity,' Lula posted on X, as diplomatic tensions between the two nations deepened.
Trump also announced a 30 percent levy on Algeria, Libya, Iraq and Sri Lanka, 25 percent duties on products from Brunei and Moldova and a 20 percent rate on goods from the Philippines.
In economic releases, traders look ahead to the weekly jobless claims report and Federal Reserve officials' speeches scheduled for later in the day after the latest Fed meeting minutes showed little support for an interest rate cut later this month.
However, the Fed's mid-June meeting showed support for a rate cut later this year. Officials noted that economic growth and the labor market remain solid and that price shocks from Trump's import taxes will be 'temporary or modest.'
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