A lower US dollar and demand for safe haven assets amid uncertainty surrounding US trade policies helped gold rise beyond $2,920 per ounce on Thursday, approaching new highs.
President Donald Trump indicated his willingness to make more changes by temporarily exempting US automakers from his 25% tariffs on Canada and Mexico for a month.
Trump could lift the 10% tax on Canadian energy imports that comply with trade agreement regulations, according to a US official.
However, China has submitted a revised WTO consultation request over the levies, and new US tariffs on Canada, Mexico, and China have sparked retaliatory actions.
Markets are waiting for hints about the Federal Reserve’s monetary stance in the non-farm payrolls data.
The argument for more rate reduction was strengthened by recent statistics showing that private sector job growth in the US fell to a seven-month low.
Nonetheless, a surprising recovery in the services sector points to the resiliency of the economy.