Gold Prices Rise Amid Escalating Trade Tensions and Imposition of New Tariffs
Global gold markets witnessed a slight increase during trading on Friday, July 11, amidst escalating trade tensions following US President Donald Trump's announcement of new tariffs on Canadian imports, with threats to expand these measures to include other trading partners. However, the strength of the US dollar tempered the gains of the precious metal, amid economic uncertainties globally.
The price of gold in spot trading rose by 0.3% to reach $1333.41 per ounce, while gold futures in the US rose by 0.5% to $1344.50.
This increase came after Trump's announcement on Thursday of imposing a 35% tariff on imports from Canada, in addition to plans to impose taxes ranging from 15% to 20% on several trading partners of the United States.
This move follows an earlier decision by Trump to raise tariffs on copper imports to 50%, and similar measures on goods imported from Brazil, as part of a wave of protectionist measures that also affected economies such as Japan and South Korea. These tariffs are expected to take effect starting August 1st.
In this regard, Tim Waterer, chief market analyst at "KCM Trade", told Reuters: "Trump's trade tariff wars are regaining momentum, but gold no longer enjoys the same support as before, as investors have become more accustomed to the volatile trade policies pursued by Trump".
It is worth noting that the US dollar index is performing strongly, heading towards recording its best weekly performance since last February, putting pressure on gold prices by making it more expensive for traders in other currencies.
As for other precious metals, silver rose by 0.4% to $37.17 per ounce, while platinum fell by 0.2% to $1358.61, and palladium rose by 0.2% to $1143.55.
