Stability of Gold Prices Amid Trump's Trade Policies

SadaNews - Gold stabilized, holding on to losses from the previous session, after U.S. President Donald Trump confirmed that the new date in August for the start of the "reciprocal" tariffs would not be delayed, despite granting countries additional time to negotiate with Washington.

Spot gold was traded at $3300.23 an ounce at 7:40 AM Singapore time, after a 1% decline in the previous session.

The postponement of the tariffs linked to "Liberation Day," first announced in April and delayed to July 9, then to next month, is part of Trump's efforts to strike more deals with countries willing to negotiate, which has reduced demand for the metal as a safe haven.

Trump threatens tariffs on copper and pharmaceuticals

Although the postponement has alleviated some concerns about the potential negative impact of U.S. tariff policies on the global economy, Trump has indicated the possibility of imposing new tariffs on imports of copper and pharmaceuticals, which could reignite demand for safe assets.

Gold prices were also affected on Tuesday by a decline in U.S. Treasury bonds, as yields rose with investors scaling back bets on interest rate cuts by the Federal Reserve before the end of the year, following a report that showed unexpected strength in the U.S. labor market. Higher borrowing costs represent an additional challenge for gold, which does not generate yields.

Despite recent declines, gold has recorded gains of over 25% since the beginning of the year, reaching a record level in April, supported by the uncertainty raised by Trump in his efforts to reshape trade policies, pushing investors towards safe havens.

Central bank purchases, led by China which announced this week an eighth consecutive month of gold buying, also contributed to supporting prices.

Other metals experienced slight declines, as silver, palladium, and platinum prices fell. Meanwhile, the Bloomberg Dollar Index remained largely unchanged.