Gold fell on Thursday, hurt by a slight recovery in the U.S. dollar and higher Treasury yields, while investors awaited U.S. nonfarm payrolls data to assess the Federal Reserve's interest rate path amid escalating global trade tensions.
Spot gold was down 0.5% to $2,903.69 an ounce as of 0852 GMT, while U.S. gold futures also lost 0.5% to $2,910.80.
The dollar index erased some of its earlier losses, while benchmark U.S. Treasury yields rose, reducing non-yielding bullion's appeal.
"The dollar index has rebounded from 104.01 to 104.18 - that could have pushed the yellow metal lower further," Reliance Securities' senior analyst Jigar Trivedi said.
However, "the broad undertone is really positive in gold."
The U.S. exempted automakers from the 25% tariffs on Canada and Mexico for a month as long as they complied with existing free trade rules.
U.S. President Donald Trump is also open to hearing about other products that should be exempted from the tariffs, the White House said.
Trump's tariffs have strained relations with Canada, Mexico, and China. While Canada and China have responded with tariffs of their own on select U.S. imports, Mexico has vowed to retaliate.
Worries over Trump's tariff policies has pushed safe-haven gold to a record high of $2,956.15 on February 24 and helped it gain more than 10% year-to-date.
Gold is considered a hedge against political uncertainties and inflation.
