Gold prices rose under the influence of Trump's new tariffs and expectations of a Fed rate cut
Kyiv • UNN
Gold prices are rising amid hopes for a Fed interest rate cut and Trump's statements about new tariffs. Spot gold and gold futures are showing growth in Asian trading.
Hopes for a Federal Reserve interest rate cut after a series of weak US economic data contribute to the rise in gold prices. UNN reports with reference to Investing.
Details
Gold prices rose in Asian trading on Thursday. Spot gold rose 0.2% to $3375.25 per ounce, while December gold futures rose 0.3% to $3440.70 per ounce by 01:45 ET (05:45 GMT).
Among the reasons contributing to the growth:
- This is the expectation that the Federal Reserve may begin cutting interest rates in September. Markets are increasing bets on a Fed rate cut in September. Meanwhile, the US services sector slowed in July after disappointing non-farm employment data last week.
- Trump's statements - the head of the White House said that the US will impose a 100% tariff on semiconductor imports from certain countries if they do not invest in American chip production. This raised concerns about further disruptions to global supply chains and higher inflation.
It should be added that Trump also signed a decree according to which the US doubles customs tariffs on imports from India to 50%. This, as is known, is due to the fact that this country continues to buy Russian oil.
On Truth Social late Wednesday, Trump said that reciprocal tariffs would take effect at midnight, and this is currently keeping investors on edge.
Recall
Gold prices fell slightly due to a stronger dollar and investors' anticipation of Trump's decisions regarding Fed appointments. Spot gold fell 0.2%, futures — 0.1%.
The price of gold in early August 2025 reached 134,480 hryvnias per troy ounce, which is more than 20% more than in December 2024.