Gold prices edged higher on Thursday as the U.S. dollar weakened and bond yields pulled back, while investors remained on edge over growing global trade tensions fueled by a fresh wave of tariffs from U.S. President Donald Trump.
Spot gold climbed 0.3% to $3,322.46 per ounce by early Asia trading (0157 GMT), while U.S. gold futures mirrored the gains, rising 0.3% to $3,331. The precious metal benefitted from a dip in the U.S. dollar index, which fell 0.3%, and a retreat in the 10-year U.S. Treasury yield, after hitting a three-week high earlier this week.
Trump’s aggressive tariff campaign continued its expansion, with the announcement of a 50% tariff on copper imports and a 50% duty on goods from Brazil, both slated to begin August 1. In addition, the U.S. issued tariff notices to seven more countries, including South Korea and Japan, piling on to 14 nations named earlier in the week, all facing 25% tariffs unless last-minute deals are struck.
“Tariff fatigue is real,” said Matt Simpson, senior analyst at City Index. “Markets are no longer reacting sharply to each new tariff headline. Traders are watching for a new catalyst to spark real volatility.”
Despite the tariff war heating up, Trump maintained that trade talks with China and the EU—Washington’s largest trading partner—are “going well,” suggesting a possible softening of rhetoric in some quarters.
From a monetary policy angle, minutes from the Federal Reserve’s June 17–18 meeting revealed that only “a couple” of officials support rate cuts in the near term. The broader consensus was to hold rates steady for now, with potential easing later in the year, citing inflation risks tied to tariff pressures.
A weaker dollar makes gold more affordable for non-U.S. buyers, while lower yields reduce the opportunity cost of holding non-yielding assets like gold, further boosting its appeal.
In the broader precious metals market, silver inched up 0.2% to $36.41 per ounce, while platinum slipped 0.3% to $1,343.22, and palladium gained 0.1% to $1,106.25.
With the next Fed policy meeting scheduled for July 29–30, all eyes are now on potential shifts in interest rate strategy, inflation readings, and whether Trump’s tariff offensive will ignite stronger reactions from the markets in the weeks to come.