Gold experienced a volatile trading session, dipping due to profit-taking after reaching a two-week high. Despite the dip, it remains on course for a second consecutive weekly gain. Factors contributing to this upward trend include escalating trade tensions, expectations of a more dovish stance from the US Federal Reserve, and supply-side pressures.
- Gold dipped to around $3,380 per ounce on Friday due to profit-taking.
- The metal is on track for a second straight weekly gain.
- President Trump imposed tariffs ranging from 10% to 50% on numerous countries.
- A separate 100% tariff was announced on imported semiconductors.
- Minneapolis Fed President Kashkari advocated for rate cuts due to signs of economic slowdown.
- Jobless claims exceeded forecasts, and continuing claims reached a three-year high.
- The US imposed tariffs on one-kilo and 100-ounce gold bars.
- China extended its gold purchases for a ninth straight month in July.
The market dynamics described suggest a complex interplay of forces impacting gold’s price. Trade protectionism, coupled with anticipation of looser monetary policy, are creating a supportive environment for the metal. The imposition of tariffs on specific gold products could further influence domestic supply and pricing. Simultaneously, sustained buying activity from a major global economy adds to the overall bullish sentiment. This combination of factors highlights the potential for continued price fluctuations and emphasizes the importance of monitoring geopolitical and economic developments.