Gold prices climb as market uncertainty continues to grow due to escalating trade tensions. On Thursday, the metal gained support from a weaker U.S. dollar and declining bond yields. These shifts made gold more attractive to investors seeking stability.
By 0608 GMT, spot gold rose 0.3% to $3,321.68 per ounce. Meanwhile, U.S. gold futures also increased 0.3%, reaching $3,329.90. Many traders turned to gold as President Trump expanded his tariff agenda. These new tariffs include a 50% duty on U.S. copper imports and the same rate on goods from Brazil. Both will take effect on August 1.
In addition, the administration issued new tariff notices targeting seven smaller trading partners. This added to 14 others announced earlier in the week. Among them are 25% tariffs on imports from South Korea and Japan. These are also scheduled to begin on August 1 unless new trade deals are reached.
Gold prices climb as investor demand for safer assets rises amid economic pressure. Analysts say the dollar’s decline played a key role in lifting gold. According to Nicholas Frappell of ABC Refinery, gold rebounded from a support level as the dollar dropped.
At the same time, the U.S. dollar index edged down 0.2%. Bond yields also dipped, easing from a three-week high. Lower yields reduce the opportunity cost of holding gold, which does not pay interest.
Minutes from the Federal Reserve’s June 17-18 meeting added more uncertainty. Only a few members favored cutting rates this month. Most officials leaned toward rate reductions later in the year. This decision links to growing inflation concerns due to tariff impacts.
Markets now await the Fed’s next policy meeting on July 29-30. Until then, gold may remain attractive to cautious investors. Other metals saw mixed movement. Spot silver rose 0.2% to $36.42 per ounce. Palladium gained 0.3% to $1,108.18. In contrast, platinum fell 0.2% to $1,345.06.
In summary, gold prices climb as trade policies stir global markets. Investors continue to favor gold when uncertainty dominates the economic outlook. If trends hold, gold prices climb could become a familiar headline in the weeks ahead.
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