Gold prices rose amid heightened interest in the safe-haven asset, fueled by U.S. President Donald Trump’s decision to impose an additional 25 percent tariff on imports from India, sparking a escalating trade dispute. About this informsReuters agency.
On the spot market, the price of gold rose by 0.3% to $3,378.18 per ounce. U.S. gold futures rose 0.4% to $3,445.60.
Gold prices were also buoyed by a weaker dollar, with the .DXY index falling to its lowest level in more than a week amid unexpectedly weak U.S. jobs data, fueling expectations for a possible rate cut by the Fed in September.
“Trump continues to threaten new tariffs, keeping gold in the spotlight as a safe-haven asset for investors. Gold approaches the psychological $3,400 mark as risk assets remain under pressure from the US president’s continued tariff announcements.” said Tim Waterer, chief market analyst of KCM Trade.
It will be recalled that on August 6, Trump announced the introduction of an additional 25 percent tariff on Indian goods, citing the fact that India continues to import oil from Russia. This deepened trade tensions between the two countries after fruitless negotiations.
The new import tax, which will take effect 21 days after August 7, will raise tariffs on some Indian exports by up to 50% — one of the highest rates among any US trading partner.
In addition, Trump announced his intention to impose a nearly 100 percent tariff on semiconductor imports, but provided significant exemptions for companies that manufacture in the U.S. or have committed to localize production.
