Gold Rebounds from One-Month Low Amid Renewed Trade Uncertainty and Safe-Haven Demand
Gold prices rebounded on Thursday after hitting a one-month low in the previous session, as renewed trade tensions and uncertainty triggered a fresh wave of demand for safe-haven assets.
Spot gold rose by 0.4% to $3,286.99 per ounce , recovering from its lowest level since June 30 recorded the day before. Meanwhile, U.S. gold futures slipped by 0.5% to $3,282.10 per ounce.
The recovery in gold prices came in the wake of a series of tariff-related announcements by former U.S. President Donald Trump on Wednesday. These included potential revisions to previously threatened duties on copper imports and Brazilian goods, as well as the termination of tariff exemptions on low-value international shipments.
Trump also revealed a new agreement with South Korea that involves a 15% tariff on imports from the country. Additionally, he confirmed that trade negotiations with India were ongoing, following his declaration of a 25% tariff on Indian goods effective from Friday.
Despite these aggressive measures, Trump expressed optimism about trade talks with China, saying he expected a "fair" agreement to be reached.
On the monetary policy front, the U.S. Federal Reserve kept interest rates unchanged on Wednesday. Comments by Fed Chair Jerome Powell following the decision led to a pullback in market expectations for a rate cut in September.
Typically, gold benefits from a low-interest-rate environment, as it reduces the opportunity cost of holding the non-yielding asset. It also strengthens its appeal during times of economic or geopolitical uncertainty.
Among other precious metals, silver held steady at $37.10 per ounce. Platinum slipped 0.3% to $1,308.85, while palladium gained 0.9% to $1,216.25 per ounce.
