Gold prices inched higher on Tuesday as the initial euphoria over the re-negotiated NAFTA deal faded and U.S. President Donald Trump stepped up his trade war with Beijing by saying it was “too early” to negotiate with China.
Brexit worries and renewed concerns about heavily indebted Italy’s budget also dented investors’ appetite for risk.
Spot gold was up 0.25 percent at $1,190.10 an ounce, while U.S. gold futures were 0.17 percent higher at $1,193.70.
The dollar slipped versus the Japanese yen as investors awaited Fed Chair Jerome Powell’s scheduled speech later in the day for additional cues on the pace on interest rate hikes.
He will be speaking on “The Outlook for Employment and Inflation” before the National Association for Business Economics.