Trump Gives Extra Time, Gold Immediately Weakens to $3,300
Gold prices fell again after US President Donald Trump decided to postpone the implementation of new tariffs until August. This decision was announced earlier this week and immediately had an impact on the gold market, which is known as a safe haven asset during global tensions. The spot gold price is currently trading at around US$3,300.23 per ounce, down around 1% from the previous session.
The decline in gold prices occurred because market players began to feel calmer. The tariff delay signaled that there was still room for trade negotiations between the US and its trading partners. This situation reduced concerns over a major trade war that could shake the global economy, so that demand for gold as a risk-protecting asset also decreased.
Even so, Trump also signaled that new tariffs on copper and pharmaceutical products might be announced. If this does happen, then the potential demand for gold could increase again as investors seek protection from new turmoil. In addition, gold prices were also pressured by rising US bond yields, which caused investors to start reducing expectations for interest rate cuts by the Federal Reserve.
Previously, gold had risen sharply and set a record in April due to increasing global uncertainty. But now, with the market mood starting to calm down and signals of high interest rates, precious metals such as gold, silver, and platinum tend to move flat or weaken. Investors are now waiting for the direction of the Fed's policy and further developments on Trump's tariff policy before taking large positions in the metals market.
Gold prices fell again after United States President Donald Trump decided to delay the implementation of new tariffs until August. This decision, announced earlier this week, immediately impacted the gold market, known as a safe haven asset during times of global tension. The spot gold price is currently trading around US$3,300.23 per ounce, down about 1% from the previous session.
The decline in gold prices occurred as market participants began to feel calmer. The tariff delay signaled that there was still room for trade negotiations between the US and its trading partners. This situation eased concerns about a major trade war that could destabilize the global economy, thus reducing demand for gold as a risk-heavy asset.
However, Trump also signaled that new tariffs on copper and pharmaceutical products might be announced. If this were to occur, gold demand could potentially increase again as investors seek protection from new turmoil. Furthermore, gold prices were also pressured by rising US bond yields, which caused investors to reduce expectations of an interest rate cut by the Federal Reserve.
Previously, gold had risen sharply and hit a record in April due to increasing global uncertainty. But now, with the market mood starting to calm down and signs of high interest rates, precious metals such as gold, silver, and platinum tend to move flat or weaken. Investors are now waiting for the direction of the Fed's policy and further developments on Trump's tariff policy before taking large positions in the metals market.
Source: (ayu-newsmaker)
