Gold edges higher on softer dollar, trade war intensifies
Spot gold rose 0.3 per cent to US$3,322.46 per ounce by 0157 GMT. US gold futures were up 0.3 per cent at US$3,331.
Trump launched his global tariff assault into overdrive on Wednesday, announcing a new 50 per cent tariff on US copper imports and a 50 per cent duty on goods from Brazil, both to start on August 1.
Trump also issued tariff notices for seven minor trading partners on Thursday, adding to 14 others issued earlier in the week, including South Korea and Japan, with 25 per cent levies set to take effect on August 1 unless agreements are reached.
Meanwhile, Trump said trade talks have been going well with China and the European Union, which is the biggest bilateral trading partner of the US
"The market impact of tariffs seems to lessen with each new headline. Tariff fatigue is here, and traders need a new catalyst to awaken volatility from its lull," said Matt Simpson, a senior analyst at City Index.
The US dollar index edged down 0.3 per cent, while the yield on benchmark 10-year US Treasury notes retreated from a three-week high.
Lower yields reduce the opportunity cost of holding non-yielding bullion, while a weaker dollar makes gold cheaper for holders of other currencies.
Minutes of the Federal Reserve's June 17-18 meeting showed that only "a couple" of Fed officials believed interest rate cuts could happen as early as this month, with most favouring reductions later this year due to inflation concerns tied to Trump's tariff policies.
The Federal Open Market Committee unanimously voted to hold rates steady at its June meeting, with the next policy meeting scheduled for July 29-30.
Spot silver edged up 0.2 per cent to US$36.41 per ounce, platinum fell 0.3 per cent to US$1,343.22 and palladium inched up 0.1 per cent to US$1,106.25.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malaysia Sun
2 hours ago
- Malaysia Sun
MALAYSIA-CHINA-ECRL MEGA RAIL PROJECT-GENTING TUNNEL-BREAKTHROUGH
Xinhua 13 Jul 2025, 18:46 GMT+10 (250713) -- KUALA LUMPUR, July 13, 2025 (Xinhua) -- This photo taken on July 12, 2025 shows a ceremony marking the breakthrough of the 16.39-kilometer Genting Tunnel of the East Coast Rail Link (ECRL) in Pahang state, Malaysia. The East Coast Rail Link (ECRL), a mega rail project in Malaysia being built by the China Communications Construction Company (CCCC), marked another key milestone on Saturday with the breakthrough of the 16.39-kilometer Genting Tunnel. The breakthrough represents a significant achievement in itself, situated beneath more than 750 meters of mountainous terrain, the company said in a statement following a ceremony to mark the occasion. TO GO WITH "Feature: ECRL mega rail project marks another milestone with breakthrough of Genting Tunnel" (Photo by Chong Voon Chung/Xinhua)
Malaysian Reserve
5 hours ago
- Malaysian Reserve
EU delays tariffs on us goods despite 30% levy announced by Trump
BRUSSELS — The European Union will extend its suspension of tariffs on goods imported from the US until early August, despite Washington's decision to slap a 30 per cent levy on imports from the bloc, European Commission chief Ursula von der Leyen said on Sunday, reported German news agency (dpa). 'The United States have sent us a letter with measures that would come into effect unless there is a negotiated solution,' she said. 'We will therefore also extend the suspension of our countermeasures till early August.' It comes after US President Donald Trump said on Saturday that he will impose 30 per cent tariffs on imports from the European Union starting August 1, despite ongoing negotiations to avert a trade war. In a letter sent to von der Leyen and posted on his platform Truth Social, he complained of the 'long-term, large and persistent' trade deficit the US has with the EU, accusing the 27-nation bloc of unfair trade policies and barriers. Trump wrote that his administration would drop the high tariff rate if 'the European Union, or countries within the EU, decide to build or manufacture within the United States'. Von der Leyen on Sunday stressed that the EU would not stand back and watch, saying her commission would continue to prepare further countermeasures in the coming weeks, adding: 'we are fully prepared.' Following Trump's letter, the EU could have imposed initial countertariffs in response to earlier US levies on steel and aluminium products from the bloc from Tuesday after the initial suspension expired. — BERNAMA-dpa
The Star
6 hours ago
- The Star
In a show of unity against Trump, Brazil and India vow to triple trade flows
As US President Donald Trump revved up his tariff threat against Brics, Brazil and India responded with a show of unity as they vowed to triple bilateral trade during Indian Prime Minister Narendra Modi's state visit to Brasilia on Tuesday. Describing the US dollar as the 'king', Trump on Tuesday claimed that Brics was set up to hurt the US and 'degenerate' the dollar. He added that Brics nations, including India and Brazil, would 'have to pay 10 per cent if they're in Brics'. Cancel anytime. Ad-free. Full access to Web and App. RM 13.90/month RM 9.73 /month Billed as RM 9.73 for the 1st month, RM 13.90 thereafter. RM 12.39/month RM 8.63 /month Billed as RM 103.60 for the 1st year, RM 148 thereafter.
