Gold holds ground as investors react to new U.S. tariff proposals and strong Treasury yields. On Tuesday, prices remained steady, showing resilience against global trade tensions.
Spot gold dipped slightly by 0.1% to $3,331.85 per ounce around 0612 GMT. Meanwhile, U.S. gold futures stayed firm at $3,341.80 per ounce. Despite global worries, the metal avoided major losses.
U.S. President Donald Trump has announced new 25% tariffs on goods from Japan and South Korea. These tariffs are scheduled to start on August 1. He stated that only the U.K. and Vietnam have negotiated acceptable deals so far.
Although negotiations are ongoing, other trading partners face pressure. Trump offered a short window for talks by capping “reciprocal tariffs” at 10% until July 9. Investors now wait to see if other countries strike agreements soon.
However, traders have not panicked. According to KCM Trade analyst Tim Waterer, most investors are cautiously watching developments. He believes the market needs a breakout to move in either direction. For now, gold holds ground despite ongoing risks.
In addition, rising U.S. Treasury yields are influencing gold’s performance. The 10-year note yield remains near a two-week high. Higher yields make gold less attractive since it does not pay interest. As a result, upside momentum for gold appears limited.
China also responded by warning the U.S. against reviving trade tensions. Beijing threatened to retaliate if Washington excludes it from supply chains. This tension adds more pressure to the global economic outlook.
The U.S. Federal Reserve will release the minutes of its June meeting on Wednesday. These notes may offer hints about future interest rate decisions. With inflation fears growing due to tariffs, markets hope for guidance.
Other precious metals moved slightly. Spot silver stayed flat at $36.75 per ounce. Platinum dipped 0.1% to $1,368.93, while palladium rose 0.2% to $1,112.88.
In conclusion, gold holds ground as traders weigh safe-haven appeal against economic uncertainty. The balance between tariffs and yields will likely shape upcoming market movements.
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