US–EU Tariffs Threaten Global Markets: Gold Rises, Silver Steady, Oil Weak
The escalation of trade tensions between the United States and the European Union has again triggered volatility in global commodity markets. Investors are now awaiting the outcome of tariff negotiations before the August 1 deadline, while market participants are responding with safe-haven and asset hedging strategies. The latest trend: gold and silver continue to strengthen, while oil prices weaken again.
The spot gold price broke through the US$3,390.69/troy ounce range, its highest level since June 17, driven by a weakening US dollar and falling US government bond yields.
Safe-haven sentiment has strengthened again due to concerns surrounding US–EU tariff negotiations; the market is awaiting a potential ECB decision on July 24 and a Fed interest rate cut in September.
Silver corrected slightly by around 0.2% to US$38.84/oz, although it remains at a high level.
Silver's upward momentum is expected to continue to be supported by industrial demand (solar panels, electronics) and capital flows to safe-haven assets, although the dollar and US bond yields remain volatile.
Gold and silver are likely to continue their short-term gains if tariff negotiations fail. Conversely, oil could potentially come under pressure if global economic concerns intensify.
Oil prices fell again: Brent weakened 0.75% to US$68.69/barrel, while WTI fell 0.76% to US$66.69/barrel. The pressure stems from concerns that a prolonged trade conflict will curb global fuel demand.
The US-EU trade war has not only triggered retaliatory tariffs but has also created a diverging trend: precious metals are rising, while oil is weakening. The August 1 deadline is expected to be a key moment that could trigger high volatility across commodities.
Source: Newsmaker.id
