Gold extended its positive momentum above $3,350 in early daily trading as the week opened, the asset’s high attraction after President Donald Trump expanded the trade war with new tariffs.
At 9.20 am, gold prices were at $3,365.44, up 0.27% since it opened in early trading on Monday in the Asian session.
Most recently, Trump said the United States would impose 30% tariffs on the European Union (EU) and Mexico effective August 1. He also announced a 35% duty on Canadian imports, a blanket tariff rate of between 15% and 20% on other trading partners and a 50% tariff on copper products.
In addition, ongoing geopolitical tensions in the Middle East continued to contribute to gold’s rise.
Reuters reported that about eight Palestinians were killed and dozens more injured while collecting water in central Gaza, with the Israeli military saying the missile sustained damage and missed its target by dozens of meters.
For now, markets will be watching for cautious moves by the Federal Reserve (Fed) that could limit gold's gains. The US central bank is expected to keep interest rates steady while waiting for the impact of tariffs on inflation.
This will make it more difficult to ease policy amid pressure from President Donald Trump.
