WASHINGTON (dpa-AFX) - Despite a weak dollar, Gold prices edged down on Tuesday, after posting gains in the previous two sessions.
However, the downside was just marginal as the commodity continued to attract safe-haven buying amid fears of a trade war and potential inflation after U.S. President Donald Trump imposed 25% tariffs on all U.S. imports of steel and aluminum.
Worries and geopolitical tensions involving Israel and Hamas also pushed up the commodity's safe-haven appeal.
Gold futures for February settled at $2,912.50 an ounce, down $1.80 or about 0.06% from previous close.
The dollar index dropped to 108.00 before edging up a bit to 108.06, but still remained below the flat line, losing nearly 0.25%.
Silver futures for February drifted down by $0.161 or 0.5% at $32.231 an ounce, while Copper futures climbed to $4.5850 per pound, losing $0.1155 or nearly 2.5%.
While the new U.S. duties on aluminum and steel are unlikely to cause significant disruption, it is feared that upcoming reciprocal tariffs, potentially taking effective on February 11 or 12, could target the pharma, semiconductor chips, and auto industries.
Federal Reserve Chair Jerome Powell delivered his semiannual monetary policy testimony before the Senate Banking Committee on Tuesday, reiterating his belief that the central bank does 'not need to be in a hurry' to adjust its policy stance.
Powell noted interest rates have been lowered by a full percentage point since last September, describing the Fed's current policy stance as 'significantly less restrictive than it had been.'
Investors await U.S. reports on consumer and producer inflation along with data on retail sales and industrial production this week for greater clarity on the economic and rate outlook.
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