Gold gains on softer dollar as investors await US trade updates
Spot gold was up 0.6% at $3,368.39 per ounce, as of 0534 GMT. U.S. gold futures rose 0.5% to $3,376.
"Dollar has made a subdued start to the week, which has left the door open for gold to post gains early doors with tariff deadlines looming large," KCM Trade Chief Market Analyst Tim Waterer said.
"The closer we move towards the key August 1 deadline without any new trade deals emerging, the more likely gold is to start fancying another run to towards the $3,400 level and perhaps beyond."
The dollar index (.DXY), opens new tab weakened 0.1% against its rivals, making gold less expensive for other currency holders.
Investors are eyeing developments in trade negotiations ahead of U.S. President Donald Trump's August 1 deadline, as U.S. Commerce Secretary Howard Lutnick remains optimistic about reaching a deal with the European Union.
Trump might visit China before going to the Asia-Pacific Economic Cooperation summit between October 30 and November 1, or he could meet Chinese leader Xi Jinping on the sidelines of the APEC event in South Korea, reports said.
At its meeting later this week, the European Central Bank is expected to hold interest rates steady at 2.0% following a string of cuts.
Last week, Federal Reserve Governor Christopher Waller said he still believes that the U.S. central bank should cut rates at its policy meeting next week.
Gold, often considered a safe-haven asset during economic uncertainties, tends to do well in a low interest rate environment.
In Japan, the ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba's grip on power as the U.S. tariff deadline looms.
Elsewhere, spot silver gained 0.3% to $38.28 per ounce, platinum added 0.5% to $1,429.08 and palladium climbed 1.6% to $1,259.93.
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North Wales Chronicle
10 minutes ago
- North Wales Chronicle
Nobody is welcoming tariffs ‘with open arms', says Irish premier
Taoiseach Micheal Martin also said the deal offered 'overall ceilings' on tariff rates and would mean they are not 'stacked' upon another. Despite suggestions from US President Donald Trump, he said his understanding was that the 15% tariff on pharmaceutical exports also represented 'a ceiling' rate. Speaking to the media at Government Buildings in Dublin on Monday, Mr Martin said the US tariffs are 'not Brexit' and the approach for supporting businesses had to be 'strategic and not a handout'. He said what effect the new trading arrangements would have on October's budget would be decided closer to the time. 'It's important to say that Europe never sought tariffs, or never sought to impose tariffs, and fundamentally, we are against tariffs: we believe in an open trading economy,' he said. 'New realities are in play and so at a broader level, the stability and predictability that this agreement brings is important for businesses, is important for consumers and indeed patients when it comes to the manufacturing and distribution of medicines,' he said. 'In essence, we have avoided a trade conflict here which would have been ruinous, which would have been very damaging to our economy, and to jobs in particular. 'The challenge now for Europe is to work on its own inefficiencies, to reduce barriers within the single market, to press ahead more ambitiously and more proactively on trade diversification and trade deals with other countries that would facilitate that market diversification that is required. 'Meanwhile, there is much to be negotiated in the aftermath of this framework agreement.' The EU is to have 15% tariffs imposed on most of its goods including cars, semiconductors and pharmaceuticals entering the US, with no new tariffs on US goods coming into the bloc. There will be 'zero for zero' tariffs on a number of products including aircraft, some agricultural goods and certain chemicals – as well as EU purchases of US energy worth 750 billion dollars (£560 billion) over three years. There is a mixed reaction to the deal across the EU, with French minister Benjamin Haddad calling the deal 'unbalanced' and Hungarian Prime Minister Viktor Orban stating that Donald Trump 'ate European Commission President Ursula) von der Leyen for breakfast'. Ireland's junior minister at the Department of Foreign Affairs, Neale Richmond, said the deal was the least worst option. 'We're not exactly celebrating this, it's not a case that this is a good thing but it's probably the least bad option based on what we were facing a couple of days ago, the prospect of a 30% tariff,' he told the BBC. Asked about mixed reactions to the deal from heads of government across Europe, Mr Martin said: 'Nobody is welcoming tariffs with open arms. 'I think we've been consistent in saying that we don't agree with tariffs, that we prefer if there weren't tariffs, but we have to deal with realities. 'I understand people criticising, but given the balance and the options here … in my view, I would appreciate the work of the (European) Commission in this regard, and the avoidance of a trade war is preferable, in my view, and that's the key issue.' He added: 'It's easy to put the chin out in life, but sometimes it's wiser to box more cautiously and to negotiate wisely and to think of the bigger picture, and I think that's what President von der Leyen and Maros Sefcovic have done on this occasion.' Asked about whether the 9.4 billion euro that the government announced last week would be spent in the budget would be cut back, Mr Martin said they would better understand the implications closer to the budget being unveiled in October. 'It's difficult at this early stage to calculate the impact of these tariffs in terms of government revenues, or indeed in terms of the prospects for 2026, so we will do further analysis of that.' He said he did not believe Irish companies would lose access to the US market as a result of the tariff rate. He added: 'This is not Brexit, and I would caution in terms of just creating funds in themselves. 'I think more importantly, we have to take decisions now that would create the opportunity or the landscape for companies to grow and to develop strongly, to become more energy efficient, in terms of research and development supports. 'It has to be a strategic approach, not a handout approach.' Responding, chief executive of business group Ibec Danny McCoy said he believed Europe had 'capitulated' to get a deal, but said if they had negotiated harder 'we could have damaged ourselves a lot more than we anticipated'. He said there would be 'hard cases' and job losses in Ireland under a 15% tariff, and was 'surprised' the government was not open to Brexit or Covid-level supports for businesses. 'It's not going to be a catastrophe, we're more resistant than that, but for some industries, going back to the point around the Brexit-type adjustment fund, you need to be sensitive there will be some areas that actually could find this devastating.' Mr Martin said it was 'vital' that the EU pushes ahead with the expansion of the European single market to reduce barriers in a number of sectors that 'are way beyond the value of the tariffs'. He said it was not clear yet what impact the tariff differential on the island of Ireland would have, as there is a 10% tariff in place in Northern Ireland. 'In terms of the north-south, again, the detail will be important here and its early days yet to be reading too much into that differential, because ours are not stacked, whereas some in the north would be, so these are complex issues that have to be worked out.'
Daily Record
10 minutes ago
- Daily Record
Donald Trump says he 'wants to see Scotland thrive' during visit
The US President – whose mother was born in the Outer Hebrides – spoke of his 'love' for the country during a visit to his golf course in Ayrshire. Donald Trump has said he wants to see Scotland 'thrive' during his visit to the country. The US President – whose mother was born in the Outer Hebrides – spoke of his 'love' for the country during a visit to his golf course in Ayrshire. Flanked by Prime Minister Sir Keir Starmer, the 79-year-old was asked if changes could be made to the UK-US trade deal, which would benefit Scotland. He said: 'I have great love for Scotland.' Speaking of his mother, the President said she would 'religiously' return home every year. He jokingly added: 'When we do our trade deal, a lot of it comes to Scotland, maybe all of it should go to Scotland.' He continued: 'We deal with the UK, but a lot of it comes to Scotland. I was very particular, because this is a part of the world I want to see thrive.' Despite the trade deal agreed between the two countries, a 10% tariff remains on Scotch whisky, one of the country's biggest exports. Asked earlier if that tariff could be dropped or eliminated as a result of the meeting with the Prime Minister, Mr Trump said: 'We'll talk about that, I didn't know whisky was a problem. I'm not a big whisky drinker, but maybe I should be.' Scottish First Minister John Swinney is expected to raise the issue when he meets the President during his visit to his second course in Aberdeenshire before he returns to the US. Join the Daily Record WhatsApp community! Get the latest news sent straight to your messages by joining our WhatsApp community today. You'll receive daily updates on breaking news as well as the top headlines across Scotland. No one will be able to see who is signed up and no one can send messages except the Daily Record team. All you have to do is click here if you're on mobile, select 'Join Community' and you're in! If you're on a desktop, simply scan the QR code above with your phone and click 'Join Community'. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'. If you're curious, you can read our Privacy Notice. 'Tariffs are very important for the Scottish economy and obviously Scotch whisky is a unique product,' he told BBC Breakfast on Monday. 'It can only be produced in Scotland. It's not a product that can be produced in any other part of the world. So there's a uniqueness about that, which I think means there is a case for it to be taken out of the tariffs arrangement that is now in place. 'Obviously, the trade deal with the United States provides a degree of stability for economic connections with the United States, but the application of tariffs is increasing the costs for the Scotch whisky industry. 'So one of my objectives will be to make the case to President Trump that Scotch whisky should be exempted from those tariffs.
Reuters
11 minutes ago
- Reuters
Chile will ask U.S. to include copper within U.S.-Chile trade deal
SANTIAGO, July 28 (Reuters) - Chile expects U.S. copper tariffs to be discussed within broader U.S. trade talks in Washington this week, Finance Minister Mario Marcel said on Monday in an interview with local radio program Duna. Marcel added that Chile would ask for any tariffs to be included within a broader trade agreement with the United States. President Trump's administration has said it will impose 50% tariffs on copper imports as of August 1. Chile is the world's top supplier of the red metal and is also the biggest provider of refined copper to the U.S., although it sends much higher volumes to China. Monday marks the start of a third round of talks between Chilean officials and the office of the U.S. Trade Representative. "What we hope is that these conversations we're starting today in Washington will also cover the issue of copper," Marcel said. "Because it wouldn't be very useful for us to have a trade agreement that excludes more than half of our exports to the U.S., such as copper and wood." When asked if Chile would seek an exemption to the U.S. copper tariffs imposed by Trump, the minister said they would seek for any tariffs to be included in a broader trade pact. "We want it to be part of the agreement, within the broader commercial discussions with Chile — not something handled separately — because it's a very central issue," the minister said. Marcel noted that other countries have included exemptions and carve-outs in their trade agreements.
