Gold edges higher on softer dollar, trade war intensifies
Spot gold rose 0.3% to $3,322.46 per ounce by 0157 GMT. U.S. gold futures were up 0.3% at $3,331.
Trump launched his global tariff assault into overdrive on Wednesday, announcing a new 50% tariff on U.S. copper imports and a 50% 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% 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 U.S.
'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 U.S. dollar index edged down 0.3%, while the yield on benchmark 10-year U.S. 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% to $36.41 per ounce, platinum fell 0.3% to $1,343.22 and palladium inched up 0.1% to $1,106.25.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
4 hours ago
- Business Recorder
Trump says Mexico, EU to face 30% tariff from Aug 1
WASHINGTON: President Donald Trump on Saturday said major US trading partners Mexico and the European Union would face a 30 percent tariff starting next month, ramping up pressure for deals in his trade wars. Both sets of duties would take effect August 1, Trump said in separate letters posted to his Truth Social platform, citing Mexico's role in illicit drugs flowing into the United States and a trade imbalance with the EU respectively. Since returning to the presidency in January, Trump has unleashed sweeping tariffs on allies and competitors alike, roiling financial markets and raising fears of a global economic downturn. But his administration is coming under pressure to secure deals with trading partners after promising a flurry of agreements. So far, US officials have only unveiled two pacts, with Britain and Vietnam, alongside temporarily lower tit-for-tat duties with China. Trump puts 35% tariff on Canada, eyes 15%-20% tariffs for others The fresh duties for Mexico announced by Trump would be higher than the 25 percent levy he imposed Mexican goods earlier this year, although products entering the United States under the US-Mexico-Canada Agreement (USMCA) are exempted. 'Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough,' Trump said in his letter. 'Starting August 1, 2025, we will charge Mexico a Tariff of 30% on Mexican products sent into the United States.' Canada earlier received a similar letter setting out 35 percent tariffs on its goods. A US official earlier told AFP that the USMCA exemption was similarly expected to remain for Canada. The EU tariff is also markedly steeper than the 20 percent levy Trump unveiled in April, as negotiations with the bloc continue. The EU, alongside dozens of other economies, had been set to see its US tariff level increase from a baseline of 10 percent on Wednesday, but Trump pushed back the deadline to August 1 just days before the elevated rates were due to take effect. Since the start of the week, Trump has sent out letters to more than 20 countries with updated tariffs for each. Brussels said Friday that it was ready to strike a deal with Washington to prevent the return of 20 percent levies, and the latest letter suggests talks will carry on. The EU has prepared retaliatory duties on US goods worth around 21 billion euros after Trump also slapped separate tariffs on steel and aluminum imports earlier this year, and they are suspended until July 14. European officials have not made any move to extend the suspension but could do it quickly if needed.
Express Tribune
15 hours ago
- Express Tribune
State Dept starts firing over 1,350 workers
A general view of the US state Department building in Washington, DC, US, July 11, REUTERS The State Department began firing more than 1,350 US-based employees on Friday as the administration of President Donald Trump presses ahead with an unprecedented overhaul of its diplomatic corps, a move critics say will undermine US ability to defend and promote US interests abroad. The layoffs, which affect 1,107 civil service and 246 foreign service officers based in the United States, come at a time when Washington is grappling with multiple crisis on the world stage: Russia's war in Ukraine, the almost two year-long Gaza conflict, and the Middle East on edge due to high tension between Israel and Iran. "The Department is streamlining domestic operations to focus on diplomatic priorities," an internal State Department notice that was sent to the workforce said. "Headcount reductions have been carefully tailored to affect non-core functions, duplicative or redundant offices, and offices where considerable efficiencies may be found," it added.
Business Recorder
17 hours ago
- Business Recorder
S&P, Dow slide as Trump turns up tariff heat on Canada
NEW YORK: The S&P 500 and the Dow fell on Friday and were headed for a downbeat week as President Donald Trump ramped up his tariff offensive against Canada, amplifying the uncertainty swirling around the US trade policy. Trump on Thursday announced a 35% tariff on Canadian imports, set to kick in next month, up from the 25% imposed in March, and warned that the levy could climb higher if Canada retaliates. The president also floated the possibility of a sweeping 15% or 20% tariff on other countries, up from the current 10% baseline. Caution also prevailed as the European Union braced for a possible formal letter from Trump, with details on fresh tariffs. At 11:47 a.m., the Dow Jones Industrial Average fell 0.68%, while the S&P 500 lost 0.27%. Eight of 11 sectors on the S&P 500 traded in the red, led by the materials index that dropped 1.3%. The S&P 500 and the tech-heavy Nasdaq were on course to close the week in the red, while the Dow looked set to end its three-week winning streak — the longest stretch since January — and braced for its steepest weekly drop in over a month. Markets this week remained mostly subdued. The only upside was Nvidia shattering all records to become the first company to top a $4 trillion valuation. Its shares hit a fresh record high on the day, helping the tech-heavy Nasdaq stay out of the red. The index held steady at 20,633.38 points. This week, Trump expanded his tariff campaign, taking aim at a wider range of countries — including allies such as Japan and South Korea — and slapping a 50% tariff on copper. Yet, the market response to this latest salvo was a far cry from the turmoil seen after April's 'Liberation Day' tariff announcements, which triggered the sharpest weekly losses for major indexes in nearly six years. Analysts are noting a growing sense of resilience among investors, who seem to be getting used to Trump's tariff threats. Investors are, however, on now guard for the upcoming earnings season, which they expect to provide fresh insight into how trade tensions are reverberating across corporate America. 'We believe expectations are a bit low for S&P 500 earnings. Much of the second quarter was marked with tariff and trade issues and that may have caused some dislocations in earnings,' said Michael Landsberg, chief investment officer, Landsberg Bennett Private Wealth Management. Denim maker Levi Strauss & Co jumped 10.9% after the company raised its annual revenue and profit forecasts and beat quarterly estimates. Meta Platforms fell 1.2%. A report said the company was unlikely to make more changes to its pay-or-consent model, potentially inviting fresh EU antitrust charges and hefty daily fines.
