Gold Prices Surge Amid Global Trade Tensions and Fed Watch

US Dollar Weakness and EU Tariff Threats Bolster Safe-Haven Demand

Global gold prices are experiencing an upward trend today, July 22, 2025, driven by a weaker US dollar and escalating trade disputes between the US and the European Union.

Trade War Fears Escalate

The United States’ potential imposition of import duties exceeding 15% on EU goods, a significant increase from the previously signaled 10%, is unsettling international markets. This move has prompted the EU to prepare a response plan, adding to economic uncertainty.

Scott Base St., the Minister of Finance, commented yesterday on the anticipated impact of these tariffs, stating, “The enforcement of customs duties at high rates per country on 1 August will increase the pressure on those countries to present a better agreement to the United States.” Conversely, Howard Lutnon, the US Secretary of Commerce, expressed optimism on Sunday, asserting confidence that a trade agreement with the European Union would be reached before the August 1 deadline.

Central Bank Focus and Market Indicators

The market’s attention is also fixed on Federal Reserve Chair Jerome Powell, who is scheduled to deliver a speech on the financial framework for large banks in Washington, D.C. His remarks will be crucial for understanding the US economic outlook and the Federal Reserve’s future interest rate direction.

In investment flows, the SPDR gold fund recorded a purchase of 3.43 tons, bringing its total holdings to 947.06 tons, indicating increased investor confidence in gold as a safe asset.

Key Economic Data Releases Today

Economic indicators to monitor closely this evening include a statement from the Governor of the Bank of England at 16:15 BST. Later, at 19:30 BST, Federal Reserve Chair Jerome Powell is set to speak, followed by key US economic data at 21:00 BST.

Technical Outlook for Gold

Support levels for global gold prices are identified at $3,383 and $3,370, with resistance points at $3,420 and $3,435. The current trend suggests an uptrend in the world gold price. Traders are advised to adopt a strategy of accumulating positions at the $3,383 support level and securing profits.

Domestic Gold Market Movements

In Thailand, gold prices are currently in a sideways-up trend, despite a strengthening Baht. Support for gold prices is seen at 51,700 and 51,500 Baht, with resistance at 52,100 and 52,300 Baht. Investors are recommended to await buying opportunities at the 51,700 Baht support level and sell for profit if the price reaches 52,100 Baht. A break below 51,500 Baht would signal a potential sell-off.

This morning, the gold market opened with a gain of 150 Baht. The retail price for gold bars is 51,700 Baht per baht for selling and 51,600 Baht per baht for buying. Gold jewelry prices are set at 52,500 Baht per baht for selling.

The Thai Baht is trading at 32.27 Baht per US dollar.

As of this morning, gold prices have seen fluctuations, with various weights of gold jewelry also seeing price adjustments. For example, 2 salung/50 satang gold is selling at 26,650 Baht per piece.

For context, the average daily gold price volatility in July has been notable. For instance, on July 21, 2025, the market saw six price fluctuations, resulting in a net increase of 150 Baht, according to recent reports. Similarly, on July 14, 2025, gold prices fluctuated eight times, closing with a 200 Baht gain.