US Tariffs Boost Gold Demand!
Gold prices held near their highest level in a month as market concerns about US tariffs intensified ahead of President Donald Trump's August 1 deadline. The precious metal was trading around $3,395 per ounce on Tuesday morning in Singapore, after rising 1.4% in the previous session. Uncertainty about the direction of trade negotiations has driven investors back to safe-haven assets like gold.
The latest statement from the White House also reinforced the risk-off sentiment in the market. Press Secretary Karoline Leavitt said Trump is likely to issue more unilateral tariffs before the August 1 deadline. Meanwhile, the weakening US dollar—which recorded its worst performance in almost a month—has also made gold more attractive to global buyers.
Investors are also closely watching the direction of the Federal Reserve's interest rate policy, which will meet next week. Although the swaps market indicates almost zero chance of a rate cut at the meeting, some market participants still predict that the Fed will cut rates by a total of 46 basis points this year. Gold tends to strengthen when borrowing costs fall, as this precious metal does not provide a yield like bonds.
So far this year, gold has surged more than 25%, driven by rising geopolitical tensions such as the conflicts in Ukraine and the Middle East, as well as concerns about the direction of US trade policy. In other precious metals markets, movement has been relatively stable. Silver and platinum prices have been unchanged, while palladium has recorded gains. The Bloomberg Dollar Index also experienced no significant changes this morning, after falling 0.5% in the previous session.
Source: Newsmaker.id
