Gold gains slightly as Trump’s tariff rollout keeps markets cautious

On Friday, Gold prices edged higher as global markets digested US President Donald Trump’s sweeping new tariffs on trading partners, even as the precious metal remained on course for a weekly loss. Spot gold rose 0.1 per cent to $3,291.46 an ounce by 7:45 a.m. in Singapore, as per Bloomberg. The slight uptick comes after bullion ended the previous session 0.5 per cent higher, though prices are still down about 1.4 per cent for the week. The metal’s gains came after the White House unveiled final tariff rates, a key piece of Trump’s protectionist agenda. As per Bloomberg, the US will enforce a minimum global tariff of 10 per cent, while imports from countries running trade surpluses with the US will face tariffs of 15 per cent or higher, starting August 1.

Trade war fear keeps the yellow metal demand alive

While the market reaction to Trump’s announcement was relatively muted, the broader theme of trade conflict and economic uncertainty continues to support gold’s appeal as a safe haven. Gold has reportedly surged nearly 25 per cent this year, hitting a record above $3,500 an ounce in April, largely driven by fears of a global trade war, persistent geopolitical risks, and central bank buying.

“Trump’s tariff agenda and concerns about a global trade war have been a major catalyst for gold’s surge,” Bloomberg noted. However, the momentum has slowed in recent months. Despite frequent tariff threats and ongoing geopolitical tensions, gold has traded within a tight range, as investors appear to have grown more accustomed to the noise of trade disputes.

Dollar strength a key headwind

Another factor capping gold’s upside is a resurgent US dollar. As per Bloomberg, the Bloomberg Dollar Spot Index closed out its best month of 2025 in July, making dollar-priced gold more expensive for buyers using other currencies.

The stronger dollar, combined with expectations of delayed interest rate cuts by the Federal Reserve, has created a challenging environment for gold bulls. The Fed has hinted it may not ease policy until at least October, especially with tariffs likely to keep US inflation elevated.

Eyes on US job data

Looking ahead, all eyes are on Friday’s US non-farm payrolls report for July, expected to show a slowdown in job growth and a potential rise in the unemployment rate. Any sign of labour market weakness could boost expectations for Fed easing and potentially support gold.

Meanwhile, silver held steady, while platinum and palladium posted modest gains in early Friday trade, according to Bloomberg data. For now, gold remains in a wait-and-watch mode as it has been caught between the push of haven demand and the pull of a strong dollar.

(With inputs from the agencies)