Gold Prices Surging Amidst Trade Uncertainty
As President Donald Trump’s August 1 tariff deadline looms, various trading partners, including South Korea and Brazil, are rushing to secure agreements. Commerce Secretary Howard Lutnick mentioned a probable 90-day extension of the trade truce between the US and China.
Investors Focus on Key Indicators
Investors are now turning their attention to this week’s critical indicators, encompassing jobs, inflation, economic activity, and the upcoming Fed policy decision on Wednesday. The US central bank is anticipated to maintain steady rates, with possible dissents against the pause from some committee members. Reduced borrowing costs generally benefit bullion due to the lack of interest payments.
Gold at a Crossroads
“Three significant events – the tariff negotiations, Fed rate determinations, and non-farm payroll updates – are queued up, poised to heighten the volatility of gold prices,” remarked Pepperstone Group Ltd. research strategist Dilin Wu. “Gold is currently at a juncture between technical and fundamental influences.”
Gold has seen a more than 25% increase this year, driven by uncertainties surrounding President Trump’s trade policies, alongside tensions in Ukraine and the Middle East, prompting a flight to safety. Nevertheless, the precious metal has been trading within a narrow range in recent months after reaching a record high above $3,500 per ounce in April.
Spot gold climbed by 0.1% to $3,317.50 per ounce as of 12:47 a.m. in London. The Bloomberg Dollar Spot Index rose by 0.2%, while silver and platinum prices declined, and palladium saw an increase.
