Gold has been trading modestly higher, hovering around $3,350 for weeks as uncertainty over tariff negotiations likely supports safe havens and investors look to Fed Chairman Jerome Powell’s speech this week.
At 9.20am, gold was at $3,357.14, up 0.21% since it opened early Monday in Asian trading.
US Commerce Secretary Howard Lutnick said that August 1 is the deadline for countries to start paying tariffs to the United States. Donald Trump had postponed his levies on April 2, the White House maintained the August date as the official date.
Uncertainty and concerns over new tariff rates could boost the yellow metal, as it is seen as a top safe haven amid uncertainty.
In addition, dovish statements from Fed officials are likely to continue to support gold.
Fed Governor Christopher Waller said on Thursday he continued to believe the US central bank should cut interest rates at its July meeting amid growing risks to the economy.
Analysts expect the Fed to keep rates on hold at the end of this month, with a 94% chance of a 25 basis point cut and a 6% chance of a 25 basis point cut.
On the other hand, renewed US Dollar (USD) demand could weigh on USD-denominated gold prices in the near term.
