WASHINGTON (dpa-AFX) - Gold prices move higher on Thursday even as the US Dollar rises amid mounting US tariff pressure.
Front Month Comex Gold for July delivery rose $5.80 (or 0.18%) to $3,317.40 per troy ounce today.
Front Month Comex Silver for July delivery gained 68.70 cents (or 1.89%) to $37.038 per troy ounce today.
Countries are hustling to sign a trade deal with the US before the brief pause on 'reciprocal tariffs' (from 25% to 40%) extended up to August 1 expires. So far, 22 countries have received letters from the US government notifying them of the tariffs they have to pay.
With the UK, China, and Vietnam having finalizing trade agreements, India and the EU are reportedly speeding up their negotiations.
Earlier this week, US President Donald Trump threatened the BRICS alliance nations with additional 10% tariffs. While China merely stated that it does not want any 'confrontation,' other BRICS nations have not responded objectively on this including India.
Later, Trump also announced his plans to impose a whopping 50% tariff on Copper and a 200% tariff on pharmaceutical imports to the US.
Yesterday, he announced that the US would impose a 50% tariff on imports from Brazil, alleging improper treatment of former Brazilian president Jair Bolsonaro. Analysts see this reason as more political than economic. Notably, next to China, the US is the second largest trading partner for Brazil.
On the monetary front, the minutes of the FOMC meeting released yesterday was divided on rate-cut timing. Only a couple of officials felt the need for reduction sooner this month. Most policymakers remained concerned about the anticipated inflationary pressure due to Trump's aggressive tariff push and advocated a cut only later this year or early next year.
Currently, the interest is set in the 4.25% to 4.50% range, much to the displeasure of Trump.
According to the US Labor Department data released today, initial jobless claims in the US fell by 5,000 from the previous week to 227,000, below market expectations. Surprisingly, this is the fourth consecutive decline in seven weeks, adding support to the idea that despite economic uncertainty, high interest rate, simmering Middle East, and fluctuating US Dollar, the US labor market is robust and resilient.
Continuing jobless claims rose, though, by 10,000 to 1,965,000, indicating that hiring is slowing.
Though the Israel-Iran conflict remains contained under the ceasefire announced by Trump on June 24, Yemen's Houthi rebels (backed by Irani-militia) conducted two attacks earlier this week on bulk carriers in Red Sea - Magic Seas and Eternity C - sparking new military tension in the Middle East.
So far, the US and the West have not directly intervened, but traders believe that when it happens, it could develop into a prolonged crisis which may bring back a safe-haven metal bull run.
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