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LONDON. — Gold prices slipped yesterday on profit taking after hitting a one-week high earlier on news that a top economic advisor to the Trump administration had resigned, stoking fears of a trade war and knocking down the dollar. Market watchers said the departure of economic adviser Gary Cohn, a former Wall Street banker, would embolden protectionist forces in the US administration as US President Donald Trump tries to impose hefty tariffs on steel and aluminium.

The dollar hovered near a 14-month low against the yen, while global equities fell. Equity futures pointed to the US S&P 500 index ESc1 opening percent lower, extending Tuesday’s falls, which followed the Cohn resignation.

Spot gold was down 0,1 percent at $1,332.91 per ounce at 1112 GMT, after touching $1,340.42, its highest since February 26. US gold futures for April delivery fell 0,1 percent to $1,333.80 per ounce.

“Yesterday’s sharp gains in gold have come under a bit of pressure amid profit-taking. The market remains in ranges (with) conflicting macro fundamentals in play. On the one hand the prospect of a trade war should be positive for gold, but bond yields are holding up, and North Korea should be another negative for gold, hence why moves in either direction don’t last,” said Fawad Razaqzada analyst at Forex.com.

Trump said on Tuesday he saw “possible progress” regarding North Korea after South Korea said Pyongyang is willing to hold talks with the United States on denuclearisation and will suspend nuclear tests while discussions are underway. — Reuters.