Ignoring Trump's Statements, Gold Prices Stabilize at $3,370 an Ounce

SadaNews - Gold prices stabilized after moderate losses, as traders ignored the uncertainty triggered by the latest trade moves of U.S. President Donald Trump, including his threat to impose a 100% tariff on semiconductor imports.

Gold settled at around $3,370 an ounce after declining by 0.3% in the previous session. This came after Trump announced his intention to impose a 100% tax on semiconductor imports in an attempt to force companies to bring production back to the United States.

Meanwhile, relations with key trading partners have become strained, as the U.S. president doubled the tariffs on Indian goods to 50% due to the Asian nation's continued purchase of energy from Russia. Japan also faces higher tariffs than those agreed upon last month on certain products, according to Kyodo News.

Increased Rate Cut Bets Support Prices

Traders are also monitoring Trump’s expected nomination in the coming days for a temporary member of the Federal Reserve Board, who is anticipated to be more aligned with his agenda to ease monetary policy. Low interest rates are beneficial for gold, which does not yield a return.

The recent surge in the precious metal has been supported by increasing expectations of interest rate cuts.

Several factors, including central bank purchases and the general trend of diversifying away from U.S. dollar-denominated assets, have contributed to boosting the value of gold. The precious metal has risen by about 30% this year, although most of the gains were achieved in the first four months when geopolitical and trade tensions shook the markets.

Gold recorded an increase of 0.1% to $3,373.45 an ounce by 8:42 AM in Singapore. Meanwhile, the Bloomberg Spot Dollar Index remained stable. Silver, palladium, and platinum prices also rose.