Gold prices paused after reports that the Trump administration was considering further restrictions on China.
The Trump administration is considering new restrictions on software exports to China, according to a Reuters report citing a U.S. official and people familiar with the matter.
The plan could restrict global shipments of goods made with or containing U.S. software, from laptop computers to aircraft engines.
This move would be a response to Beijing's recent restrictions on rare earth exports and follows President Donald Trump's previous threat to block sales of vital software to China.
Trump said on October 10 that he plans to impose 100% tariffs on Chinese goods bound for the United States and add controls on the export of any and all critical software by November 1, though he did not provide details.
The Reuters report added that the proposal may not move forward, but its study points to a potential escalation in tensions with China.
Some officials prefer a softer approach, while others support announcing the measure as a pressure point without implementing it.
A person familiar with the discussions said the plan could cover a wide range of products because everything imaginable is made using American software.
The plan is not the only option on the table, according to the report.
Gold prices now
Gold futures rose more than 1% to a session high of $4,133.39 per ounce. At 6:00 AM, prices reached $4,095.46 per ounce.
Spot gold prices fell 0.45% to $4,078.67 per ounce, while the session high was $4,116.35 per ounce.
