Gold Soars, What's Behind the Deal and the Fed?
Gold has maintained its gains for three consecutive days, driven by US President Donald Trump's announcement of a trade deal with Japan and the Philippines. Trump announced new tariffs of 15% on Japanese goods and 19% on Philippine goods, signaling progress in the tense trade negotiations ahead of the August 1 tariff deadline. This news has investors increasingly focused on developments in trade negotiations, particularly with China, which are scheduled to be discussed again at a meeting in Stockholm next week.
In addition to trade progress, the weakening US dollar and falling US government bond yields also contributed to the rise in gold prices. Treasury Secretary Scott Bessent expressed support for Federal Reserve Chairman Jerome Powell, who had been criticized by Trump for keeping interest rates high. This situation has made gold more attractive as a safe haven asset because it does not pay interest and is usually priced in US dollars.
Gold prices have risen by about a third so far this year, driven by uncertainty regarding Trump's global trade policies and conflicts in Ukraine and the Middle East. Despite this, gold prices have remained within a tight range over the past few months and are currently about $70 below their record high of over $3,500 per ounce reached in April.
Market participants are now awaiting several key US economic data releases in the coming days, and attention will be focused on statements from Federal Reserve officials ahead of next week's policy meeting. Spot gold prices are stable at around $3,430 per ounce, while silver remains stable, and platinum and palladium have experienced slight declines.
Source: Newsmaker.id
