Gold Prices Climb Worldwide as Dollar Weakens and Trade Tensions Heighten
Gold prices climbed during Thursday’s trading session, supported by a decline in the U.S. dollar and lower U.S. Treasury yields, as investors closely monitor escalating trade tensions led by the United States.
Spot gold rose by 0.3% to $3,322.46 per ounce as of 01:57 GMT, while U.S. gold futures gained the same percentage to reach $3,331 per ounce. The movement reflects a growing shift toward safe-haven assets amid heightened uncertainty surrounding global trade negotiations.
This rise comes as the United States expanded its protectionist measures. President Donald Trump announced new tariffs of 50% on copper imports and imposed similar duties on goods from Brazil, set to take effect at the beginning of August. Additionally, formal notifications were issued to seven new trade partners regarding upcoming tariffs, adding to a list of 14 other countries previously notified, including South Korea and Japan. These measures are expected to further intensify global trade tensions.
Amid this escalation, uncertainty still clouds the outcome of ongoing trade talks, despite U.S. statements indicating that negotiations with China and the European Union are progressing positively. However, market sentiment remains cautious, driving investors toward safe assets such as gold.
On the financial front, the U.S. dollar index dropped by 0.3%, enhancing gold’s appeal to holders of other currencies. Meanwhile, the yield on the U.S. 10-year Treasury note fell back from a three-week high, reducing the opportunity cost of holding non-yielding assets like gold.
Support extended to other precious metals as well. Silver rose 0.2% in spot trading to $36.41 per ounce. In contrast, platinum fell by 0.3% to $1,343.22, while palladium edged up 0.1% to $1,106.25 per ounce.
These market movements reflect growing concerns over the future of global trade, reinforcing expectations for continued demand for gold and other precious metals as hedging tools in times of political and economic uncertainty.