Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Gold prices climbed to $3,354, up nearly 1% from $3,322, driven by a risk-off market mood triggered by U.S. President Donald Trump’s trade policies. His 35% tariffs on Canadian goods and proposed 15-20% duties on other trading partners have heightened global trade tensions, boosting demand for safe-haven assets like gold. Investors await key U.S. economic data, including June’s Consumer Price Index (CPI), expected to rise to 2.6% year-on-year.
Tariff Policies and Market Impact
Trump’s trade measures, including 50% tariffs on Brazilian and copper imports, threaten economic stability. The proposed 15-20% duties could increase U.S. consumer prices, pushing inflation above May’s 2.4%. This complicates the Federal Reserve’s price stability efforts, as noted by Chicago Fed President Austan Goolsbee, who emphasized jobs and inflation over rate cuts for debt relief. Gold’s appeal strengthens as the U.S. Dollar Index (DXY) gains 0.87%, reflecting a risk-averse market.
Economic Outlook and Policy Response
Next week’s U.S. data, including CPI, Retail Sales, and Initial Jobless Claims, will shape market expectations before the Federal Reserve’s July 19 blackout period. Core CPI is projected at 2.8% year-on-year, with monthly figures at 0.3%. Flat Retail Sales and slightly lower Jobless Claims (225K) signal economic caution. Gold’s technical outlook remains bullish, with the Relative Strength Index indicating buyer momentum above $3,350.
Policymakers as well as investors closely monitor tariff-driven inflation risks and pursue trade negotiations to mitigate disruptions. Investors can leverage gold’s safe-haven status amid volatility, while tracking Federal Reserve speeches for policy signals. Until trade tensions ease, gold is likely to sustain its upward trajectory.
