Gold Rebounds from One-Month Low Amid Renewed Trade Tensions
Gold prices climbed on Thursday (July 31), recovering from a one-month low reached in the previous session, as renewed trade uncertainty sparked by fresh U.S. tariff actions increased demand for the safe-haven asset. The rebound also attracted dip buyers, despite diminished expectations for near-term interest rate cuts in the U.S.
Spot gold rose 0.4% to US$3,286.99 per ounce as of 0041 GMT, after hitting its lowest level since June 30 on Wednesday. Meanwhile, U.S. gold futures slipped 0.5% to US$3,282.10 per ounce.
The recovery followed a flurry of tariff announcements by U.S. President Donald Trump on Wednesday. These included revised levies on imports of copper and Brazilian goods, removal of tariff exemptions for small-value overseas shipments, and a new 15% tariff on South Korean imports as part of a trade agreement. Trump also confirmed a 25% tariff on Indian goods starting Friday and voiced optimism about trade negotiations with China.
While the Federal Reserve kept interest rates unchanged on Wednesday, Fed Chair Jerome Powell’s remarks signaled reduced likelihood of a rate cut in September, further weighing on gold’s interest-rate-sensitive appeal.
Gold generally benefits from economic and geopolitical uncertainty, and tends to perform well in a low interest rate environment.
Traders now await the U.S. core PCE index report, a key inflation gauge, due later on Thursday. The index is projected to increase 0.3% month-on-month and 2.7% year-on-year, according to a Reuters survey.
Despite second-quarter U.S. GDP growing more than forecast, underlying indicators showed domestic demand rising at its slowest pace in two-and-a-half years, casting doubt on the strength of the rebound.
In other precious metals, spot silver held steady at US$37.10 per ounce, platinum dipped 0.3% to US$1,308.85, and palladium rose 0.9% to US$1,216.25.
