Gold Rebounds as Traders Weigh Trade War, Interest-Rate Path

Gold rebounded following its steepest one-day loss this year as traders weighed the impacts of US President Donald Trump’s trade war on the future path for interest rates.

In a Thursday interview with Bloomberg Television, Federal Reserve Governor Christopher Waller said companies may begin laying off more workers if aggressive tariff levels are reinstated, and he’d support rate cuts in that scenario to protect the jobs market. Meanwhile, Fed Bank of Cleveland President Beth Hammack told CNBC the US central bank could move on rates as early as June if it has clear evidence of the economy’s direction.