Gold prices rose on Thursday, buoyed by a weaker U.S. dollar and escalating global trade tensions following President Donald Trump’s imposition of reciprocal tariffs on several countries.
On Wednesday, Trump surprised markets by announcing 50% tariffs on Brazil, escalating a dispute with Brazilian President Luiz Inacio Lula da Silva. This move was unexpected given that the U.S. recorded a trade surplus with Brazil last year.
Spot gold prices increased 0.2% to $3,320.58 per ounce, while U.S. gold futures rose 0.3% as of 8:21 a.m. GMT. The U.S. dollar index, which tracks the currency’s strength against a basket of foreign currencies, slipped 0.2%, and the 10-year Treasury yield declined by 0.074 percentage points to 4.341% on Wednesday, according to The Wall Street Journal.
A weaker dollar typically makes gold more attractive to investors using other currencies to buy dollar-denominated bullion. Gold has gained 26% so far this year amid growing safe-haven demand, driven by concerns that Trump’s tariffs could increase the risk of a global recession.
This week, President Trump also sent letters to several countries, including Sri Lanka, announcing a new round of reciprocal tariffs set to take effect by August 1. Additionally, he imposed 50% tariffs on copper, a critical industrial metal.
— Agencies
