Gold prices rose on Thursday as the U.S. dollar and bond yields declined, while investor focus was on trade negotiations as U.S. President Donald Trump broadened tariff measures with new announcements.
In Dubai, gold rates experienced an uplift, with 24-carat gold rising AED2.5 to AED400.25 and 22-carat gold gaining AED2.25 to AED370.75. Additionally, 21-carat gold rose AED2.25 to AED355.5, and 18-carat gold was up AED1.75 to AED304.5.
Globally, spot gold gained 0.19 percent to $3,318.82 as of 4:47 GMT. Meanwhile, U.S. gold futures were up 0.19 percent at $3,327.17. In the past 30 days, gold prices have recorded a 0.36 percent decline as tensions in the Middle East eased.
Supporting gold prices, the U.S. dollar index declined 0.13 percent to 97.43, while the yield on benchmark 10-year U.S. Treasury notes retreated from a three-week high. Lower bond yields reduce the opportunity cost of holding non-yielding bullion, while a weaker dollar makes gold cheaper for holders of other currencies.
Trump escalates trade war
Gold prices rose after Trump intensified his tariff campaign on Wednesday by announcing a 50 percent tariff on U.S. copper imports and a 50 percent levy on Brazilian goods, both scheduled to take effect on August 1.
He also issued tariff notices to seven smaller trading partners, adding to the 14 notices already sent earlier in the week, including to key allies South Korea and Japan, with 25 percent tariffs also set for August 1 unless deals are reached.
“Gold is currently trading in a relatively tight horizontal range just below the April record high near $3,500. A lack of fresh bullish catalysts has raised the risk of a deeper correction, especially after recent signs of buyer fatigue. At the same time, surprisingly strong U.S. economic data has postponed rate cut expectations without triggering a significant gold selloff—another sign of underlying resilience,” said Ole Hansen, head of commodity strategy, Saxo Bank.
Tariff-induced inflation risks cloud rate cut outlook
Minutes from the Federal Reserve’s June 17–18 meeting revealed that only “a couple” of officials supported the idea of cutting interest rates as soon as this month, while the majority preferred waiting until later in the year, citing inflation risks linked to Trump’s tariff policies. A low-interest rate environment supports the appeal and prices of non-yielding assets like gold.
The Federal Open Market Committee voted unanimously to keep rates unchanged at the June meeting, with the next policy decision due on July 29–30.
“Technically, gold remains in consolidation mode, with immediate support at $3,245 and secondary support at $3,120. A break below the 200-day moving average—currently at $2,945—would challenge our bullish outlook. However, gold has remained above that level since October 2023, when it traded below $2,000. Until then, we view this consolidation as a pause—not the end—of the investment metals rally,” added Hansen.
Read: Oil prices fall to $70.17 as Trump expands tariffs, triggering demand concerns
Other precious metals
As gold prices rose, the precious metals market saw mixed movement. Spot silver gained 0.23 percent to $36.42, while platinum dipped 0.29 percent to $1,343.43 and palladium fell 0.40 percent to $1,100.48. Copper, on the other hand, surged 2.51 percent to $5.58.
Silver’s recent breakout above $35 has reignited speculation that the semi-industrial metal may have further room to run in the months ahead, explained Hansen. The move is underpinned by a structural supply deficit dating back to 2019, with annual demand consistently outpacing supply, eroding above-ground stockpiles and tightening the market.
Meanwhile, platinum has emerged as the top-performing major commodity in 2025, with year-to-date gains of 54 percent, most of which have occurred since May. The rally was sparked by a technical breakout above $1,025, surpassing a long-term descending trendline stretching back to the 2008 peak near $2,300.
