Gold prices experienced a rebound on Thursday, recovering from a one-month low reached in the prior session. This uptick was driven by trade uncertainty linked to new U.S. tariff announcements, which bolstered demand for bullion. Investors capitalized on price dips, even as expectations for a U.S. rate cut diminished. Spot gold increased by 0.4% to $3,286.99 per ounce. Bullion reached its lowest point since June 30 in the prior session.
U.S. gold futures experienced a decline of 0.5%, settling at $3,282.10. On Wednesday, U.S. President Donald Trump made a series of tariff announcements, which included adjustments to previously proposed levies on copper imports and goods from Brazil, as well as the termination of an exemption for small-value shipments from abroad.
Trump has revealed a deal with South Korea that includes a 15% tariff on imports from the nation, while also affirming that negotiations with India are ongoing following the announcement of a 25% tariff on Indian goods set to take effect on Friday. He conveyed a sense of optimism regarding trade negotiations with China, indicating his expectation for a fair agreement to be achieved.
Meanwhile, the U.S. Federal Reserve maintained its interest rates on Wednesday, and Chair Jerome Powell’s remarks subsequent to the decision tempered anticipations of rate reductions in September. Gold, frequently regarded as a safe-haven asset amid economic uncertainties, typically performs well in a low interest rate environment. The market is poised for the release of the U.S. core PCE index data later today, anticipated to increase by 0.3% month-on-month and 2.7% year-on-year.
The U.S. economy experienced a stronger-than-anticipated rebound in growth during the second quarter; however, this figure significantly exaggerated the overall economic health. The primary driver of this improvement was a notable decline in imports, while domestic demand rose at its most sluggish rate in two and a half years. Spot silver maintained its position at $37.10 per ounce, while platinum experienced a decline of 0.3% to $1,308.85, and palladium saw an increase of 0.9% to $1,216.25.