Gold Prices Rise as Markets Focus on US Inflation Data

Global gold markets witnessed a significant rise today, Tuesday, July 15, supported by anticipation of inflation data in the United States which may determine the Federal Reserve's monetary policy direction in the coming months.

Gold in spot trading rose by 0.5% to reach $3363.22 per ounce, while US gold futures rose by 0.4% to $3372.60.

Analysts believe that this increase comes amid renewed trade tensions after US President Donald Trump threatened to impose a 30% tariff on imports from Mexico and the European Union starting in August, following the failure of trade negotiations between the parties involved.

Tim Waterer, Chief Market Analyst at KCM Trade, noted that "Gold has previously proven to be a preferred safe haven in times of escalating tariff tensions, and the current move towards the $3350 level reflects a repetition of this pattern," as reported by Reuters.

However, he added a warning that "rising US Treasury bond yields and a stronger dollar have created an unfavorable environment... If gold aims to achieve further gains and move towards the $3400 level, it may require a decline in the dollar or in yields, in the absence of major geopolitical events."

Currently, markets are awaiting US consumer price data for June, expected to be released later today, with economists anticipating an increase in the annual inflation rate to 2.7% from 2.4% in May, while core inflation may rise to 3% from 2.8% in the previous month.

This comes at a time when Trump has renewed his criticism of Federal Reserve Chairman Jerome Powell, considering that interest rates should be at 1% or lower, while markets expect a collective 50 basis point cut by the end of the year, with the first cut expected in September.

In a related context, silver rose in spot trading by 0.3% to $38.24 per ounce, after touching its highest level since September 2011, while platinum rose by 0.3% to $1368.30, and palladium rose by 0.1% to $1194.52.

Waterer explained that "Silver benefits from supply concerns and growing industrial demand. With gold rising over the past eighteen months, investors have turned to seek opportunities in other assets, and silver has been one of the metals that has benefited from this shift."