Gold prices rose on Thursday, driven by the weakness of the U.S. dollar amid heightened global trade tensions, following President Donald Trump’s imposition of reciprocal tariffs on several countries.
On Wednesday, Trump shook the world after revealing 50% tariffs on Brazil, following a feud with Brazilian President Luiz Inacio Lula da Silva. The move came as a particular surprise, given that the U.S. posted a trade surplus with Brazil last year.
Spot gold prices rose 0.2% at $3,320.58 per ounce, while U.S. gold futures also advanced 0.3% at 8.21 a.m. GMT. The U.S. dollar index, which measures the value of the U.S. currency relative to a basket of foreign currencies, slipped 0.2%, while the 10-year Treasury yield fell 0.074% to 4.341% on Wednesday, as per a report by The Wall Street Journal.
A decline in the U.S. dollar makes gold more attractive for investors who use foreign currencies to purchase dollar-priced bullion. Gold prices have gained 26% this year, amid rising safe-haven bets, as Trump’s tariffs have raised recession risks worldwide.
So far this week, Trump has sent letters to several countries, including Sri Lanka, revealing a fresh set of reciprocal tariffs. The U.S. President has set a deadline of Aug. 1 before the tariffs take effect. Trump has also announced 50% tariffs on copper, a key metal used across a wide range of industries.
- Agencies
