Gold prices rebounded on Thursday after hitting a one-month low in the previous session, as renewed trade uncertainty following fresh U.S. tariff announcements boosted demand for the safe-haven metal. This uptick came despite a decline in expectations for a U.S. interest rate cut in September, which typically weighs on the yellow metal.
In Dubai, gold rates saw an uptick, with 24-carat gold rising by AED3 to AED397.5 and 22-carat gold increasing by AED2.75 to AED368. Furthermore, 21-carat gold climbed AED3 to AED353, while 18-carat gold gained AED2.25, reaching AED302.5.
Globally, spot gold was trading at $3,298.01 as of 5:06 GMT, down a marginal 0.06 percent, after hitting its lowest level since June 30 at $3,267.79 on Wednesday. Meanwhile, U.S. gold futures fell 0.15 percent to $3,347.92.
Trump’s tariff threats boost gold’s appeal
Gold prices have drawn buying interest at levels below $3,300, with traders viewing the metal as a value play amid heightened economic uncertainty. This comes as U.S. President Donald Trump escalated trade tensions with a wave of new tariff announcements on Wednesday.
These included adjustments to earlier threats on copper imports and Brazilian goods, the removal of duty exemptions for low-value overseas shipments, and a new 15 percent tariff on imports from South Korea as part of a bilateral deal.
Additionally, Trump confirmed a 25 percent tariff on Indian goods effective Friday, though he noted that negotiations with New Delhi are still ongoing. Despite the broad scope of these measures, Trump expressed optimism about reaching a fair trade deal with China.
The uncertainty surrounding tariffs has added to global market volatility, reinforcing gold’s appeal as a safe-haven asset.
Fed keeps rates steady amid global economic uncertainty
The U.S. Federal Reserve kept interest rates unchanged on Wednesday, with Fed Chair Jerome Powell signaling a more cautious outlook that dampened hopes for a rate cut in September. Gold prices typically benefit from a low-interest-rate environment due to the metal’s non-yielding nature. Nonetheless, gold remains in demand as a safe-haven asset amid global economic uncertainty.
Analysts noted that the $3,250 level is emerging as a key support zone, potentially shielding prices from a sharper decline. However, a breach below this threshold could pave the way for a further drop toward $3,200.
Later today, market attention will turn to the release of the U.S. core Personal Consumption Expenditures (PCE) index, a key inflation gauge closely watched by the Federal Reserve.
The index is expected to rise by 0.3 percent on a monthly basis and 2.7 percent year-on-year. The data could influence expectations around future monetary policy, particularly regarding the timing and likelihood of potential rate cuts.
Read: Oil prices fall to $73.08 as Trump’s tariff threats mount, U.S. inventories rise
Other precious metals
As gold prices rebounded from a one-month low, the precious metals market saw upward movement. Spot silver gained 0.32 percent to $37.24, while platinum rose 1.27 percent to $1,329.53. In addition, palladium surged 2.63 percent to $1,236.85.
