Mixed Signals from the US Regain Gold as a Mainstay
Gold prices rose on Tuesday (July 15), continuing their upward trend after investors weighed mixed signals from the United States regarding global trade negotiations. The precious metal rose as much as 0.7%, marking its fourth gain in five days, after experiencing a slight decline on Monday. The market responded to statements by US President Donald Trump indicating he remained open to further negotiations, despite continuing to send tough signals through tariff threats.
Trump referred to threatening letters to trading partners, including the European Union, as part of a "deal strategy." This created new uncertainty for investors, prompting them to return to safe-haven assets like gold. This uncertainty has led the market to adopt a cautious, wait-and-see approach regarding the direction of US trade policy.
Gold has experienced a significant rally this year, surging more than 25% and briefly reaching a record high above $3,500 per ounce in April. This rise was fueled by concerns over US protectionist policies and their potential impact on the global economy. However, over the past three months, prices have tended to stagnate as investors refrained from buying gold at high levels while awaiting clarity on the direction of global trade.
City Index market analyst Fawad Razaqzada stated that if trade negotiations deteriorate before August, gold prices could break their previous record. "Currently, the market is still in a cautious mode. However, technically, the direction of gold prices remains bullish," he said. Gold traded up 0.6% to $3,363.97 per ounce at 11:08 a.m. London time.
Meanwhile, other precious metals also strengthened. Silver edged up after hitting its highest level in nearly 14 years the previous day, although it later weakened. Platinum and palladium also showed gains, while the US dollar index, which often moves inversely with gold prices, fell 0.2%, providing additional support for the precious metal.
Source: (ayu-newsmaker)
