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Gold Prices Climb Amid Trade War Fears

Dollar Strength Limits Gains as New Tariffs Loom

Gold prices experienced a boost today following the announcement of new tariffs by **President Donald Trump**, impacting Canadian imports and threatening broader trade actions, yet the dollar’s strength curbed more substantial gains as global trade tensions escalate.

Market Reaction to Tariff Announcements

Spot gold increased by 0.3 percent, reaching $3333.67 per ounce as of 02:45 GMT. Meanwhile, U.S. gold futures saw a rise of 0.6 percent, settling at $3345.10.

**Trump** stated on Thursday that the U.S. would impose 35 percent tariffs on Canadian imports and is considering applying uniform tariffs of 15 percent or 20 percent on various other trade partners. These measures follow Wednesday’s announcement of 50 percent tariffs on copper imports and similar taxes on goods from Brazil.

All newly announced tariffs are scheduled to take effect on August 1st.

According to the World Bank, global trade is expected to grow by 2.6% in 2024, a significant drop from previous years, reflecting ongoing trade tensions and policy uncertainties (World Bank, June 2024).

Analyst Perspective

“Although **Trump’s** customs wars are gaining momentum again, gold did not get the support he had previously obtained because investors have become more accustomed to the story of the customs duties and the policy -making style of **Trump**,” stated **Tim Water**, a CCC market analyst.

The dollar index is on track for its best weekly performance since February 24, making the precious metal more expensive for buyers using other currencies.

Other Precious Metals

Among other precious metals, spot silver saw a rise of 0.4 percent, reaching $37.17 an ounce. Platinum decreased by 0.2 percent to $1358.61, while palladium increased by 0.2 percent to $1143.55.

Gold is often regarded as a safe-haven asset during periods of economic uncertainty.