PRECIOUS-Safe-haven gold touches 2-week peak on trade tensions, rate cut hopes
By Sarah Qureshi
Aug 7 (Reuters) - Gold rose to an over two-week high on Thursday, buoyed by safe haven demand after U.S. President Donald Trump's tariffs went into effect and U.S. jobs data added to rate-cut expectations.
Spot gold XAU= gained 0.7% to $3,392.65 per ounce as of 0202 p.m. ET (18:02 GMT), after hitting its highest level since July 23 earlier in the session. U.S. gold futures GCcv1 settled 0.6% higher at $3,453.7.
"Ongoing trade tensions, and heightened geopolitical tensions continue to underpin the market with the safe-haven interest," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Trump's higher tariffs on imports from a slew of countries came into effect on Thursday, leaving some trade partners like Switzerland, Brazil and India scrambling to reach a better deal.
Elsewhere, Israeli Prime Minister Benjamin Netanyahu said Israel aims to take military control of all of Gaza.
Gold, used as a store of value during uncertainty, also tends to thrive in a low-interest rate environment.
The number of Americans filing new applications for unemployment benefits ticked up to a one-month high last week, data showed, hinting at some easing in the U.S. labor market.
The data is supportive of rising expectations for Fed rate cuts, said Grant.
Last week, weaker U.S. payrolls data boosted rate cut bets, with the market now pricing in an over 91% chance of a 25-basis-point rate cut next month, as per CME Group's FedWatch Tool.
Meanwhile, Fed Governor Christopher Waller is emerging as a top candidate to be the U.S. central bank's next chair, Bloomberg News reported. Trump has repeatedly criticized Fed Chair Jerome Powell for not cutting interest rates.
Spot silver XAG= was up 0.7% at $38.11 per ounce, its highest since July 25, palladium XPD= gained 1.7% to $1,151.31, and platinum XPT= was steady at $1,333.93.
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