Gold prices are drawing support from renewed safe-haven demand, as global trade tensions continue to fuel market uncertainty. Meanwhile, mixed signals regarding potential U.S. interest rate cuts are keeping the dollar under pressure, further enhancing gold’s appeal. However, the metal’s continued movement within a narrow range reflects investor caution and hesitation ahead of initiating new buying positions.
Buyers remain in control as the U.S. dollar enters a phase of temporary stability following a late recovery on Friday. Investors are now closely watching Federal Reserve Chair Jerome Powell’s upcoming speech on Tuesday, which is expected to shape near-term market direction.
With no major economic data scheduled for release on Monday, market sentiment toward dollar denominated gold is likely to be driven primarily by developments related to U.S.-EU tariff negotiations. Simultaneously, market participants are keeping an eye on earnings reports from major tech companies such as Alphabet, amid cautiously optimistic expectations.
Despite that, market anxiety persists over President Donald Trump’s plans to impose tariffs on European imports as the August 1 deadline approaches. While the U.S. Commerce Secretary expressed confidence on Friday in reaching a deal, media reports suggest the administration may demand raising the minimum tariff rate to between 15% and 20%, up from the previously discussed 10%, increasing the likelihood of a trade escalation.
In response, the European Union has warned of a strong reaction if no agreement is reached by the set deadline. These ongoing tensions are further supporting gold’s safe-haven status, especially in light of the political instability in Japan. Adding to the uncertainty, President Trump’s repeated criticism of Fed Chair Powell continues to weigh on the dollar, prompting some investors to seek refuge in gold.
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