Gold Prices Rise.. $3360 per Ounce

SadaNews - Gold prices have risen as traders assess the differing views among U.S. Federal Reserve officials on how President Donald Trump's tariff agenda will affect inflation.

The precious metal increased by 0.5% to near $3360 per ounce, after Federal Reserve Governor Christopher Waller called for a rate cut last week. His colleague Michelle Bowman also expressed openness to a rate cut, while other members of the board showed greater caution due to the risk of continued inflation stemming from tariffs. Gold often benefits from lower borrowing costs since it does not yield interest.

This divergence comes at a time when Trump continues to pressure Federal Reserve Chairman Jerome Powell, whose term as chairman ends next May, as the White House administration considers potential candidates to succeed him, promising to select someone who supports lowering interest rates. The president also responded to a report by the Wall Street Journal indicating that Treasury Secretary Scott Pice advised him that markets would react negatively if Powell were dismissed.

Upcoming trade developments as the U.S. tariff deadline approaches

On the trade front, European Union officials are preparing to meet early this week to formulate a plan to deal with the likelihood of not reaching an agreement with Trump. Investors are closely monitoring the course of talks with several trading partners ahead of the August 1 deadline set by Trump for imposing what he calls "reciprocal tariffs."

Gold has risen by over 25% since the beginning of the year, driven by escalating geopolitical tensions and concerns about dollar-denominated assets, which has bolstered demand for safe havens.

The yellow metal has remained in a narrow range over the past months, while investors await clarity regarding global trade negotiations, the course of interest rate cuts, and the impact of tariffs on the global economy.

Spot gold rose 0.5% to $3368.35 per ounce by 1:35 PM in Singapore. The Bloomberg Dollar Spot Index fell. Silver, platinum, and palladium also rose.