Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Gold prices rebounded from one-month lows in Asian trade on Thursday, as escalating trade tariff concerns ahead of President Donald Trump’s looming deadline increased demand for safe-haven assets like gold.
Gold Price Movements:
- Spot Gold rose 0.8% to $3,301.21 an ounce, marking a recovery after a recent dip.
- Gold Futures remained mostly unchanged at $3,352.70/oz by 02:08 ET (06:08 GMT).
Factors Driving Gold’s Rebound:
- Trade Tariff Concerns: Markets were focused on the impending August 1 deadline for new tariffs announced by President Trump. His recent trade actions, including a 15% tariff on South Korean imports and 25% tariffs on Indian goods, have heightened tariff-related jitters, triggering a flight into safe-haven assets like gold.
- Uncertainty Around U.S. Trade: A Politico report revealed that Trump intends to sign executive orders on Thursday to impose higher tariffs on countries that have failed to reach trade deals, further escalating uncertainty.
Market Response to Fed’s Decision:
- Federal Reserve’s Stance: On Wednesday, the Federal Reserve held rates steady at 4.25%–4.50%, as expected. However, Chairman Jerome Powell’s comments dampened market expectations for a September rate cut, which capped gold’s rebound.
- Impact on Gold: Gold typically becomes less attractive when interest rates are high, as it offers no yield. The Fed’s hawkish outlook diminished hopes for near-term cuts, which limited gold’s gains.
Impact on Other Commodities:
- Copper Prices: U.S. Copper Futures plummeted 4.2%, to $4.43 per pound, following Trump’s announcement of a 50% tariff on semi-finished copper products starting August 1. This led to a 19% intraday decline, marking the largest-ever drop for copper futures.
- Platinum: Platinum Futures rose by 1.8% to $1,339.05/oz, benefiting from the overall rise in metal prices due to trade tensions.
- Silver: Silver Futures declined by 1.4%, trading at $37.218 per ounce.
As the U.S.-EU trade deal and U.S.-Japan trade deal temporarily eased market fears, gold and other safe-haven assets have seen some selling pressure, but tariff uncertainties persist. Investors will closely monitor trade developments and the Fed’s policy stance in the coming days for further clues on market direction.
