Gold Prices Stable Amid Escalating Trade Tensions and Awaited US Inflation Data
Gold prices remained stable during Monday's trading on July 14, supported by investors' move towards safe havens following US President Donald Trump's threats to impose new tariffs on European Union and Mexican imports by 30%.
In spot trading, gold held steady at $3357.56 per ounce, after touching its highest levels since June 23. Meanwhile, US gold futures rose by 0.19% to reach $3370.40.
These movements came after Trump threatened on Saturday to impose high tariffs on Mexican and EU imports starting from August 1, following failed trade negotiations with the US's major trading partners.
In response, both the EU and Mexico described these actions as "unfair and destabilizing", with the EU deciding to postpone retaliatory measures until early August in a move aimed at preserving negotiation opportunities.
Investors are now focusing on the US inflation data for June, set to be announced on Tuesday, which may provide indications on the Federal Reserve's interest rate outlook. Markets expect a potential 50 basis point cut by December.
In this regard, Austan Goolsbee, President of the Federal Reserve Bank of Chicago, pointed out that the new tariffs could increase inflation concerns, potentially prompting the central bank to adopt a "wait-and-see" policy, as reported by the Wall Street Journal on Friday.
On the other hand, the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, reported a 0.12% decrease in its holdings of the precious metal, dropping to 947.64 tons on Friday from 948.80 tons on Thursday.
Data from the Commodity Futures Trading Commission showed a decrease in speculative net long positions in gold markets by 1855 contracts during the week ending on July 8, bringing the total contracts to 134,842.
As for the performance of other precious metals, silver saw a slight increase of 0.4% to $38.49 per ounce, while platinum declined by 1.1% to $1384, and palladium dropped by 1.7% to $1194.40.
