The gold market is currently navigating through turbulent waters, driven by a mix of external pressures and growing uncertainty. Key among these is the Federal Reserve’s cautious stance on cutting interest rates. Adding to the complexity are persistent geopolitical tensions and unresolved tariff disputes, all of which continue to impact the bond markets and the U.S. dollar—factors that inevitably spill over into gold.
Given the current landscape, shorting gold doesn’t seem appealing. In fact, any pullback from current levels is likely to attract value-seeking investors eager to buy the dip.
Gold prices moved up again on Friday afternoon, making it three days in a row that they have gone up. This is despite the fact that the U.S. dollar became stronger. People are still buying safe assets since tensions are building around the world and U.S. President Donald Trump’s trade plans are hard to forecast.
August gold futures were last trading up by $40.30 at $3,366.00 per ounce.
The latest surge follows President Trump’s announcement on Thursday of a new 35% tariff on Canadian imports starting August 1. In an interview with NBC News, he also revealed plans to impose sweeping tariffs of 15% to 20% on most major U.S. trade partners.
These aggressive trade moves, which are already disrupting global commerce, combined with ongoing conflict in the Middle East, have intensified demand for gold as a protective asset. The metal has now surged 37% over the past year.
“There is a broader feeling that there has been a significant increase in gold-relevant geopolitical risks this year, which has led to increased allocations among investors and reinforced the momentum among central banks,” noted Christopher Louney, commodities strategist at RBC Capital Markets. “Gold now holds the second-largest portion of central bank reserves after the dollar.”
Meanwhile, the ICE U.S. Dollar Index edged up 0.17 points to 97.82, while Treasury yields also rose. The yield on the two-year U.S. note was last seen at 3.906%, up 2.3 basis points, and the 10-year note climbed 6.9 points to yield 4.42%.
Business Consultant | Web designer & Developer | Social media Manager | SEO | Passionate Learner, I am deeply passionate about learning and continuously improving my skills.
My interests are diverse, ranging from music and singing to computers and programming languages, digital art, AI
