New Rise in Gold Prices Amid Fears of Trade War

SadaNews - Gold prices rose slightly following a series of tariff announcements made by U.S. President Donald Trump, which heightened fears of a global trade war, providing support for the precious metal as a safe haven.

Gold recorded approximately $3,330 an ounce, after ending Tuesday's trading down 0.6%.

Trump stated that he reached an agreement with Indonesia, but imposed a 19% tariff on it, adding that tariffs on drugs could begin by the end of the month, and tariffs on semiconductors are also on the horizon. Meanwhile, the U.S. has opened an investigation into Brazil's "unfair" trading practices.

Gold had declined in the previous session following the release of a moderate U.S. inflation report, which raised expectations that the Federal Reserve may keep its monetary policy unchanged. It is worth mentioning that high interest rates negatively affect gold, which does not yield returns.

Gold Trading Within a Narrow Range

Gold has been trading within a relatively narrow range for months, but it is still up more than 25% since the beginning of the year, supported by trade tensions, geopolitical conflicts, strong inflows into gold-backed exchange-traded funds, and central bank purchases.

As of 8:19 a.m. Singapore time, spot gold rose by 0.2% to $3,331.47 an ounce. The Bloomberg Dollar Index showed little change. Silver also rose after a two-session decline from its highest level in 14 years last week, while palladium and platinum remained stable.