Precious metals showed modest losses on Wednesday amid the weakening in risk-off sentiment that was prompted by the resignation of Gary Cohn. The chief economic advisor to United States President Donald Trump is leaving in the wake of increased tensions over global trade, as the White House is poised to impose costs on importers of aluminum and steel in a bid to preserve strategic parts of its industry.
Cohn was portrayed in the media as the current administration’s main defender of free trade, so the move brings uncertainty to the market.
The dollar moderately declined against the Swiss franc and the yen, traditionally the safe haven currencies, but gold traders didn’t appear impressed, even though the greenback’s depreciation underpins demand for the yellow metal. It was changing hands for $1,332.63 per ounce at 9:46 am GMT or 0.08% lower in the session, compared to an earlier rise to $1,340.4, a nine-day high. Silver dipped 0.32% to $16.69 for one troy ounce. Platinum was 0.57% down at $963, while palladium dropped 1.12% to $975.5 per ounce.