WASHINGTON (dpa-AFX) - Gold prices rose on safe-haven demand on Thursday, triggered by increased hopes for rate cuts, US dollar weakness following the weaker jobs data, along with the market uncertainty created by the pressure tactics exerted by the US by constantly altering tariffs.
Front Month Comex Gold for August delivery closed up by $20.30 (or 0.60%) at $3,400.30 per troy ounce today.
Front Month Comex Silver for August delivery jumped 39.29 cents (or 1.04%) to $38.158 per troy ounce today.
The sweeping new tariffs imposed by US President Donald Trump on imports into the US from a vast majority of its trading partners take effect beginning today.
Apart from the tariffs, Trump is pushing the pedal harder on 'penalty' tariffs that he had devised to curb countries buying oil from Russia.
After imposing an additional 25% tariff on India as a 'secondary sanction' days before, Trump today stated coldly, 'you're going to see so much secondary sanctions.' This has raised concerns that the tariff landscape will be rougher than expected and the war may be prolonged for months.
Separately, he stated his plans to impose a 100% tariff on foreign-made semiconductors with exemptions for companies that invest in the US.
Data released by the US Labor Department today revealed that the initial jobless claims rose by 7,000 from the previous week to 226,000, while continuing claims increased to 1.974 million from 1.936 million in the previous week.
US labor productivity in the nonfarm business sector rose by 2.4% in the second quarter 2025.
Recent data has increased expectations for Fed rate cuts, sooner than later, aided by recent comments from Trump that he may replace the current Fed Chair who is reluctant to lower the lending rates.
As per CME Group's FedWatch Tool, the market is now pricing in an over 91% chance of a 25-basis-point interest rate cut next month.
Continuing weakness in the labor market could help the yellow metal in the long run.
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