Gold prices edged higher on Thursday, fuelled by a weaker U.S. dollar and escalating global trade tensions following U.S. President Donald Trump’s latest tariff measures.
Spot gold rose 0.2% to $3,320.58 per ounce, while U.S. gold futures advanced 0.3% in early morning trade (8:21 a.m. GMT). The U.S. dollar index slipped by 0.2%, making dollar-denominated assets like gold more appealing to investors using other currencies. Additionally, the 10-year Treasury yield declined by 0.074% to 4.341%, reflecting growing investor caution.
The rise in gold prices comes a day after Trump announced a 50% tariff on Brazilian imports, surprising markets, especially as the U.S. recorded a trade surplus with Brazil last year. The decision followed a public spat with Brazilian President Luiz Inacio Lula da Silva.
In addition to Brazil, the U.S. has issued letters to several other nations, including Sri Lanka, outlining reciprocal tariff measures, with an enforcement deadline of August 1. Trump also revealed a 50% tariff on copper, a metal critical to multiple industries, further stoking market fears.
Gold has gained 26% so far this year, driven by safe-haven demand amid mounting economic uncertainty and recession risks linked to aggressive trade actions.
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