Gold futures edge lower as markets assess US policy outlook

Gold bars

Gold futures slipped slightly on Thursday as markets reassessed the outlook for US trade and monetary policy amid fading expectations of a near-term interest rate cut.

August gold futures edged down 0.1%, or $3.2, to settle at $3,292.6 per ounce.

Spot gold, however, rose 0.7%, or $23.15, to $3,298.33 an ounce as of 08:52 a.m. Mecca time.

The US Dollar Index, which tracks the greenback against a basket of six major currencies, dipped 0.15% to 99.69 points.

Elsewhere, September silver futures fell 1.45% to $37.19 per ounce. Spot platinum rose 1.25% to $1,329.72, while spot palladium gained 0.9% to $1,227.9.

US President Donald Trump announced a new trade deal with South Korea that includes a 15% tariff on imports from the country. He also confirmed that 25% tariffs on Indian goods will take effect on Friday, while expressing optimism about reaching a fair agreement with China, Reuters reported.

The developments come after the US Federal Reserve held interest rates steady on Wednesday. Comments from Fed Chair Jerome Powell dampened market expectations for a rate cut in September.