Gold prices held steady on Monday after suffering their biggest weekly decline in months, as concerns grew that President Donald Trump’s tariff-driven inflation pressures in the US could delay the Federal Reserve’s rate-cutting cycle. According to Bloomberg, bullion traded around $3,340 an ounce in early Asian hours, down 0.1 per cent at 8:35 a.m. Singapore time. This follows a 1.8 per cent drop last week, the sharpest fall in three months, as signs of accelerating US wholesale inflation tempered expectations of near-term monetary easing.<h2>Tariff strains fuelling inflation</h2>Data released last week showed US wholesale inflation in July jumped at its fastest pace in three years, prompting traders to trim bets on a September Fed rate cut. Gold, which offers no yield, tends to lose appeal in a higher interest rate environment.&nbsp;Raphael Bostic, President of the Atlanta Federal Reserve, told Bloomberg after touring the southeastern US that “tariff strains are real” and that high borrowing costs are eroding corporate profits. Markets, however, still expect as many as two Fed cuts before year-end, though the timing remains uncertain.<h2>Geopolitical lens: Trump-Zelenskiy talks in focus</h2>Traders are also keeping a close watch on President Trump’s upcoming meeting with Ukrainian leader Volodymyr Zelenskiy. The talks are expected to define terms for a possible peace deal discussed during Trump’s meeting with Russian President Vladimir Putin in Alaska last week.&nbsp;As per Bloomberg, the outcome of these negotiations could sway gold sentiment, with a ceasefire potentially reducing haven demand, while prolonged conflict could spur more inflows into bullion.<h2>Gold consolidates near record highs</h2>Despite the recent pullback, gold has been consolidating just below its record high of $3,500 an ounce, reached in April. The metal remains up more than 25 per cent so far this year, buoyed by geopolitical risks, concerns over global growth, and central banks diversifying away from dollar-denominated assets.&nbsp;Silver and platinum were little changed on Monday, while palladium posted modest gains, Bloomberg reported. Meanwhile, the Bloomberg Dollar Spot Index was steady, offering little directional push for precious metals.&nbsp;With inflation fears intensifying and geopolitics still unsettled, gold’s trajectory may hinge on whether the Fed can balance market expectations with economic realities.&nbsp;(With inputs from the agencies)&nbsp;&nbsp;

Traders trimmed bets on September easing after wholesale prices surged, though markets still expect up to two Fed cuts by year end.

Gold prices held steady on Monday after suffering their biggest weekly decline in months, as concerns grew that President Donald Trump’s tariff-driven inflation pressures in the US could delay the Federal Reserve’s rate-cutting cycle. According to Bloomberg, bullion traded around $3,340 an ounce in early Asian hours, down 0.1 per cent at 8:35 a.m. Singapore time. This follows a 1.8 per cent drop last week, the sharpest fall in three months, as signs of accelerating US wholesale inflation tempered expectations of near-term monetary easing. Tariff strains fuelling inflation Data released last week showed US wholesale inflation in July jumped at its fastest pace in three years, prompting traders to trim bets on a September Fed rate cut. Gold, which offers no yield, tends to lose appeal in a higher interest rate environment. Raphael Bostic, President of the Atlanta Federal Reserve, told Bloomberg after touring the southeastern US that “tariff strains are real” and that high borrowing costs are eroding corporate profits. Markets, however, still expect as many as two Fed cuts before year-end, though the timing remains uncertain. Geopolitical lens: Trump-Zelenskiy talks in focus Traders are also keeping a close watch on President Trump’s upcoming meeting with Ukrainian leader Volodymyr Zelenskiy. The talks are expected to define terms for a possible peace deal discussed during Trump’s meeting with Russian President Vladimir Putin in Alaska last week. As per Bloomberg, the outcome of these negotiations could sway gold sentiment, with a ceasefire potentially reducing haven demand, while prolonged conflict could spur more inflows into bullion. Gold consolidates near record highs Despite the recent pullback, gold has been consolidating just below its record high of $3,500 an ounce, reached in April. The metal remains up more than 25 per cent so far this year, buoyed by geopolitical risks, concerns over global growth, and central banks diversifying away from dollar-denominated assets. Silver and platinum were little changed on Monday, while palladium posted modest gains, Bloomberg reported. Meanwhile, the Bloomberg Dollar Spot Index was steady, offering little directional push for precious metals. With inflation fears intensifying and geopolitics still unsettled, gold’s trajectory may hinge on whether the Fed can balance market expectations with economic realities. (With inputs from the agencies)

Gold steadied near $3,340 an ounce on Monday after its steepest weekly fall in three months, as Trump’s tariff-driven inflation risks clouded the outlook for US rate cuts.&nbsp;

Gold steadies after weekly drop as US inflation fears mount

Gold prices are heading for a weekly decline as hotter-than-expected US inflation data reduced market confidence in a September interest rate cut by the Federal Reserve. As per Bloomberg, spot gold held steady at $3,336.45 an ounce in Friday morning trade in Singapore, putting it on track for a 1.8 per cent loss this week. The metal fell 0.6 per cent in the previous session after data showed US wholesale inflation in July accelerated at its fastest pace in three years. The surprise reading lifted US Treasury yields and strengthened the dollar — moves that typically weigh on non-yielding bullion, which is priced in the greenback.Bloomberg data on swap market pricing shows traders now see around a 90 per cent chance of a Fed rate cut in September, compared with full certainty earlier this week. Gold usually benefits from lower interest rates, but the latest inflation surprise has tempered the outlook for rapid monetary easing.<h2>Year-to-date gains still strong</h2>Despite the weekly drop, bullion remains more than 25 per cent higher this year. Bloomberg notes that much of the rally came in the first four months of 2025, driven by heightened geopolitical and trade tensions that boosted safe-haven demand, along with robust central bank purchases.<h2>Tariff confusion adds to volatility</h2>Last week, uncertainty over whether gold bars would face US tariffs pushed the premium for New York futures over London spot prices sharply higher. President Donald Trump later said there would be no levy, helping narrow the gap. However, Bloomberg reports that formal clarification from authorities is still awaited.<h2>Mixed moves in other precious metals</h2>Silver was little changed on Friday, while platinum and palladium edged lower. The Bloomberg Dollar Spot Index was also steady, signalling muted currency market activity.&nbsp;With inflationary pressures persisting and geopolitical risks still elevated, traders will be watching the Fed’s September policy meeting closely for cues on whether gold can resume its upward run or face further profit-taking.&nbsp;(With inputs from the agencies)

Spot gold is down 1.8% this week, despite a 25% year-to-date increase. Ongoing tariff uncertainties and inflationary pressures contribute to market volatility.

Gold prices are heading for a weekly decline as hotter-than-expected US inflation data reduced market confidence in a September interest rate cut by the Federal Reserve. As per Bloomberg, spot gold held steady at $3,336.45 an ounce in Friday morning trade in Singapore, putting it on track for a 1.8 per cent loss this week. The metal fell 0.6 per cent in the previous session after data showed US wholesale inflation in July accelerated at its fastest pace in three years. The surprise reading lifted US Treasury yields and strengthened the dollar — moves that typically weigh on non-yielding bullion, which is priced in the greenback. Bloomberg data on swap market pricing shows traders now see around a 90 per cent chance of a Fed rate cut in September, compared with full certainty earlier this week. Gold usually benefits from lower interest rates, but the latest inflation surprise has tempered the outlook for rapid monetary easing. Year-to-date gains still strong Despite the weekly drop, bullion remains more than 25 per cent higher this year. Bloomberg notes that much of the rally came in the first four months of 2025, driven by heightened geopolitical and trade tensions that boosted safe-haven demand, along with robust central bank purchases. Tariff confusion adds to volatility Last week, uncertainty over whether gold bars would face US tariffs pushed the premium for New York futures over London spot prices sharply higher. President Donald Trump later said there would be no levy, helping narrow the gap. However, Bloomberg reports that formal clarification from authorities is still awaited. Mixed moves in other precious metals Silver was little changed on Friday, while platinum and palladium edged lower. The Bloomberg Dollar Spot Index was also steady, signalling muted currency market activity. With inflationary pressures persisting and geopolitical risks still elevated, traders will be watching the Fed’s September policy meeting closely for cues on whether gold can resume its upward run or face further profit-taking. (With inputs from the agencies)

Gold prices are set for a weekly decline, impacted by stronger US inflation data which diminished hopes for a September Fed interest rate cut.

Gold slips for weekly loss as US inflation dents Fed rate cut bets

The US dollar steadied in Asian trade on Friday, holding on to overnight gains after hotter-than-expected wholesale inflation data forced traders to scale back expectations for aggressive interest rate cuts by the Federal Reserve.&nbsp;As per Reuters, the euro and sterling were little changed against the dollar after sliding 0.5 per cent and 0.3 per cent on Thursday respectively. The Japanese yen, however, strengthened 0.3 per cent to 147.39 per dollar, supported by stronger-than-forecast second-quarter GDP figures.<h2>Inflation surprise rattles markets</h2>The move came after US producer prices recorded their fastest annual increase in three years in July, fuelled by a broad rise in the cost of goods and services. The unexpected spike in producer price inflation followed a softer consumer price reading earlier in the week, which had briefly lifted hopes of policy easing and boosted risk sentiment.&nbsp;According to the CME FedWatch tool, the odds of a 25-basis-point cut at the Fed’s September meeting dipped slightly after Thursday’s data, while earlier speculation of a larger 50-basis-point move vanished entirely. Chris Weston, head of research at Pepperstone, told Reuters the data “warranted a move in front-end rates and firmer dollar … but a 25-basis-point cut remains the default setting.”<h2>Bond yields react</h2>US Treasury yields mirrored the shift in sentiment. The two-year yield held steady in Asia at 3.726 per cent after climbing as much as five basis points on Thursday, while the benchmark 10-year yield hovered at 4.285 per cent.&nbsp;Joseph Carpuso, head of international economics at the Commonwealth Bank of Australia, told Reuters the Fed now faces “a conundrum” of elevated inflation alongside weakening job growth. He expects Fed Chair Jerome Powell to address this balancing act in his speech next week at the Kansas City Fed’s annual Jackson Hole symposium.<h2>Political backdrop and global focus</h2>The rate debate is also unfolding against a geopolitical backdrop. US President Donald Trump is set to meet Russian President Vladimir Putin in Alaska later on Friday. Trump has said he believes Putin is prepared to end the war in Ukraine, though he suggested peace talks would likely require a second round involving Ukrainian President Volodymyr Zelenskiy.<h2>Crypto markets rebound slightly</h2>In digital assets, Bitcoin and Ether inched higher after falling about four per cent each on Thursday. Bitcoin had briefly touched a record high before rate cut bets were pared back, according to Reuters.&nbsp;(With inputs from the agencies)

US Treasury yields reflected the sentiment shift. Geopolitical factors, including Trump-Putin talks, add context to the rate debate. Crypto markets saw a slight recovery after recent declines.

The US dollar steadied in Asian trade on Friday, holding on to overnight gains after hotter-than-expected wholesale inflation data forced traders to scale back expectations for aggressive interest rate cuts by the Federal Reserve. As per Reuters, the euro and sterling were little changed against the dollar after sliding 0.5 per cent and 0.3 per cent on Thursday respectively. The Japanese yen, however, strengthened 0.3 per cent to 147.39 per dollar, supported by stronger-than-forecast second-quarter GDP figures. Inflation surprise rattles markets The move came after US producer prices recorded their fastest annual increase in three years in July, fuelled by a broad rise in the cost of goods and services. The unexpected spike in producer price inflation followed a softer consumer price reading earlier in the week, which had briefly lifted hopes of policy easing and boosted risk sentiment. According to the CME FedWatch tool, the odds of a 25-basis-point cut at the Fed’s September meeting dipped slightly after Thursday’s data, while earlier speculation of a larger 50-basis-point move vanished entirely. Chris Weston, head of research at Pepperstone, told Reuters the data “warranted a move in front-end rates and firmer dollar … but a 25-basis-point cut remains the default setting.” Bond yields react US Treasury yields mirrored the shift in sentiment. The two-year yield held steady in Asia at 3.726 per cent after climbing as much as five basis points on Thursday, while the benchmark 10-year yield hovered at 4.285 per cent. Joseph Carpuso, head of international economics at the Commonwealth Bank of Australia, told Reuters the Fed now faces “a conundrum” of elevated inflation alongside weakening job growth. He expects Fed Chair Jerome Powell to address this balancing act in his speech next week at the Kansas City Fed’s annual Jackson Hole symposium. Political backdrop and global focus The rate debate is also unfolding against a geopolitical backdrop. US President Donald Trump is set to meet Russian President Vladimir Putin in Alaska later on Friday. Trump has said he believes Putin is prepared to end the war in Ukraine, though he suggested peace talks would likely require a second round involving Ukrainian President Volodymyr Zelenskiy. Crypto markets rebound slightly In digital assets, Bitcoin and Ether inched higher after falling about four per cent each on Thursday. Bitcoin had briefly touched a record high before rate cut bets were pared back, according to Reuters. (With inputs from the agencies)

The US dollar stabilized in Asian trading following unexpectedly high wholesale inflation, reducing speculation about aggressive Fed rate cuts. The euro and sterling remained stable, while the yen strengthened due to robust GDP growth.

Dollar holds ground after hot US inflation data trims Fed rate cut hopes

Gold prices inched higher on Tuesday, recovering some ground after a steep sell-off in the previous session, as investors awaited key US inflation data that could shape the Federal Reserve’s interest rate path. As per Reuters, spot gold rose 0.2 per cent to $3,350.03 per ounce at 0146 GMT, while US gold futures for December delivery were steady at $3,402.80. This followed Monday’s sharp losses, when spot prices fell 1.6 per cent and futures dropped over 2 per cent after US President Donald Trump said imported gold bars would not be subject to tariffs — easing fears that had rattled bullion markets.<h2>CPI data in focus</h2>Market attention is now on the US consumer price index (CPI) report due at 1230 GMT. Economists polled by Reuters expect core CPI to have risen 0.3 per cent in July, lifting the annual rate to 3 per cent, still well above the Fed’s 2 per cent target. “Market participants now will be definitely focusing on the upcoming Fed rate cut, which has been more or less priced in for September,” OANDA senior market analyst Kelvin Wong told Reuters.&nbsp;“If we start to see the core CPI data come in slightly below expectations, that could further support this rate cut outlook." Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold. Wong also noted that long-term US Treasury yields remain capped below key resistance levels, which could provide additional support for bullion.<h2>Political backdrop and Fed pressure</h2>According to Reuters, traders are pricing in about an 85 per cent chance of a Fed rate cut in September, as per CME’s FedWatch tool. Gold tends to perform well during periods of policy easing and market uncertainty.&nbsp;Trump has repeatedly criticised the Fed for not cutting rates more aggressively, and markets are also watching who he will nominate to succeed current Chair Jerome Powell when his term ends in May next year.&nbsp;Meanwhile, a White House official confirmed to Reuters that Trump had signed an executive order on Monday extending a pause in sharply higher US tariffs on Chinese imports for another 90 days, a move that could ease fears of renewed trade tensions and reduce safe-haven demand.<h2>Broader precious metals market</h2>In other precious metals, spot silver gained 0.6 per cent to $37.81 per ounce, platinum rose 0.6 per cent to $1,334.24, and palladium climbed 0.7 per cent to $1,143.93, according to Reuters data.&nbsp;While Trump’s assurance that bullion imports would not face US tariffs calmed some market nerves, traders are still awaiting formal clarification following a recent federal court ruling that caused uncertainty in the sector.&nbsp;(With inputs from the agencies)&nbsp;

 Attention is on the CPI report due at 1230 GMT, with economists predicting a 0.3% rise. Market participants foresee an 85% chance of a Fed rate cut in September. Other precious metals like silver, platinum, and palladium also experienced gains.

Gold prices inched higher on Tuesday, recovering some ground after a steep sell-off in the previous session, as investors awaited key US inflation data that could shape the Federal Reserve’s interest rate path. As per Reuters, spot gold rose 0.2 per cent to $3,350.03 per ounce at 0146 GMT, while US gold futures for December delivery were steady at $3,402.80. This followed Monday’s sharp losses, when spot prices fell 1.6 per cent and futures dropped over 2 per cent after US President Donald Trump said imported gold bars would not be subject to tariffs — easing fears that had rattled bullion markets. CPI data in focus Market attention is now on the US consumer price index (CPI) report due at 1230 GMT. Economists polled by Reuters expect core CPI to have risen 0.3 per cent in July, lifting the annual rate to 3 per cent, still well above the Fed’s 2 per cent target. “Market participants now will be definitely focusing on the upcoming Fed rate cut, which has been more or less priced in for September,” OANDA senior market analyst Kelvin Wong told Reuters. “If we start to see the core CPI data come in slightly below expectations, that could further support this rate cut outlook." Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold. Wong also noted that long-term US Treasury yields remain capped below key resistance levels, which could provide additional support for bullion. Political backdrop and Fed pressure According to Reuters, traders are pricing in about an 85 per cent chance of a Fed rate cut in September, as per CME’s FedWatch tool. Gold tends to perform well during periods of policy easing and market uncertainty. Trump has repeatedly criticised the Fed for not cutting rates more aggressively, and markets are also watching who he will nominate to succeed current Chair Jerome Powell when his term ends in May next year. Meanwhile, a White House official confirmed to Reuters that Trump had signed an executive order on Monday extending a pause in sharply higher US tariffs on Chinese imports for another 90 days, a move that could ease fears of renewed trade tensions and reduce safe-haven demand. Broader precious metals market In other precious metals, spot silver gained 0.6 per cent to $37.81 per ounce, platinum rose 0.6 per cent to $1,334.24, and palladium climbed 0.7 per cent to $1,143.93, according to Reuters data. While Trump’s assurance that bullion imports would not face US tariffs calmed some market nerves, traders are still awaiting formal clarification following a recent federal court ruling that caused uncertainty in the sector. (With inputs from the agencies)

Gold prices rose slightly on Tuesday after a significant sell-off, reaching $3,350.03 per ounce, as investors anticipated crucial US inflation data. Spot gold rebounded by 0.2%, while December futures held steady.

Gold edges higher ahead of US inflation data as rate cut bets build

The latest readings suggest that President Donald Trump’s higher import duties, part of his ongoing trade crackdowns are starting to work their way into consumer prices. Bloomberg notes that a separate measure of core services inflation remains tame for now, but economists expect gradual increases in the coming months. For the Federal Reserve, this creates a policy challenge. Officials have kept interest rates unchanged in 2025, seeking clarity on whether tariffs will cause sustained inflation. But they must also weigh signs of a cooling labour market, the other half of their dual mandate.<h2>Consumers still spending, for now</h2>Retail sales data due Friday is expected to show a solid July increase, boosted by incentives on vehicle purchases and online shopping spikes during Amazon’s Prime Day. However, Bloomberg reports that once adjusted for inflation, the figures may point to a more lacklustre consumer spending environment. Manufacturing data from the Fed is likely to show stagnant factory output as producers navigate shifting tariff rules. Meanwhile, a preliminary US–China trade truce is set to expire on Tuesday, although an extension remains possible.<h2>Global markets eye central bank's move&nbsp;</h2>Beyond the US, Bloomberg notes that the Bank of Canada will publish minutes from its decision to hold rates at 2.75 per cent for a third meeting, while leaving the door open for cuts if inflation remains contained. July home sales data will also indicate whether recent gains have continued. Asia’s economic calendar is packed, with China releasing July activity data, including industrial production, retail sales, and jobless figures on Friday. Australia’s central bank is expected to cut rates for a third time this year, while India’s CPI and wholesale price data will offer fresh insight into price trends before Trump’s 50 per cent tariff on Indian goods fully kicks in.&nbsp;In Europe, the UK will release wage growth and GDP figures in the wake of the Bank of England’s latest rate cut, while Switzerland’s economy may show a sudden contraction even before Trump’s 39 per cent tariff impact takes hold. Africa and Latin America will also see rate decisions and inflation reports, with Brazil, Argentina, and Chile updating price data, and Kenya, Uganda, and Namibia adjusting policy to manage growth and price stability.&nbsp;The coming week’s data, as per Bloomberg, will help clarify whether the US inflation uptick is temporary or the start of a broader trend. If tariffs continue to feed through to consumer prices, the Fed may face mounting pressure to act, even as global markets adjust to a wave of central bank decisions and shifting trade policies.&nbsp;(With input from the agencies)&nbsp;

Trump 50% tariff on Indian goods and levies on other nations are reshaping global markets, from US inflation pressures to rate decisions in Asia, Europe, and Latin America. This week data will test how far the ripple effects go.

The latest readings suggest that President Donald Trump’s higher import duties, part of his ongoing trade crackdowns are starting to work their way into consumer prices. Bloomberg notes that a separate measure of core services inflation remains tame for now, but economists expect gradual increases in the coming months. For the Federal Reserve, this creates a policy challenge. Officials have kept interest rates unchanged in 2025, seeking clarity on whether tariffs will cause sustained inflation. But they must also weigh signs of a cooling labour market, the other half of their dual mandate. Consumers still spending, for now Retail sales data due Friday is expected to show a solid July increase, boosted by incentives on vehicle purchases and online shopping spikes during Amazon’s Prime Day. However, Bloomberg reports that once adjusted for inflation, the figures may point to a more lacklustre consumer spending environment. Manufacturing data from the Fed is likely to show stagnant factory output as producers navigate shifting tariff rules. Meanwhile, a preliminary US–China trade truce is set to expire on Tuesday, although an extension remains possible. Global markets eye central bank's move Beyond the US, Bloomberg notes that the Bank of Canada will publish minutes from its decision to hold rates at 2.75 per cent for a third meeting, while leaving the door open for cuts if inflation remains contained. July home sales data will also indicate whether recent gains have continued. Asia’s economic calendar is packed, with China releasing July activity data, including industrial production, retail sales, and jobless figures on Friday. Australia’s central bank is expected to cut rates for a third time this year, while India’s CPI and wholesale price data will offer fresh insight into price trends before Trump’s 50 per cent tariff on Indian goods fully kicks in. In Europe, the UK will release wage growth and GDP figures in the wake of the Bank of England’s latest rate cut, while Switzerland’s economy may show a sudden contraction even before Trump’s 39 per cent tariff impact takes hold. Africa and Latin America will also see rate decisions and inflation reports, with Brazil, Argentina, and Chile updating price data, and Kenya, Uganda, and Namibia adjusting policy to manage growth and price stability. The coming week’s data, as per Bloomberg, will help clarify whether the US inflation uptick is temporary or the start of a broader trend. If tariffs continue to feed through to consumer prices, the Fed may face mounting pressure to act, even as global markets adjust to a wave of central bank decisions and shifting trade policies. (With input from the agencies)

As US tariffs push some prices higher, the Fed faces a tough call: act against potential inflation or hold rates amid signs of economic slowdown. Global markets brace for a week of key central bank moves and trade policy shifts.

US inflation set to tick higher as Trump tariffs hit consumers

The US economy is showing signs of strain as the effects of President Donald Trump’s trade policies begin to make their mark. After months of uncertainty surrounding the administration’s sweeping tariffs, key consumer goods are starting to feel the pressure of higher import costs. As the tariff-induced price hikes gradually filter down to everyday products, economists are raising concerns about the long-term impact on household budgets and economic growth. While the broader economy has remained resilient, the growing costs of items like appliances, clothing, and electronics have pushed inflation to its highest level in four months, leading many to question how much longer the US can power through these pressures.Inflation in the United States spiked in June, with the consumer price index (CPI) rising by 0.3 per cent, marking the largest monthly gain since January, according to the data released by the Labor Department's Bureau of Labor Statistics on July 15. This pushed the annual inflation rate to 2.7 per cent, up from 2.4 per cent in May, in line with economists’ expectations. However, the most important thing to be noted here is that the increase in prices is being largely driven by goods exposed to tariffs, including appliances, clothing, and electronics, signalling a potential for sustained inflationary pressures.<h2>Tariff-driven inflation gains momentum</h2>The most recent CPI data provides a clear indication that tariffs imposed by President Trump’s administration are beginning to reach the consumers. While inflation had remained subdued in earlier months due to inventory stockpiles and declining energy prices, economists now warn that the full effects of these tariffs, especially on imports from China, are becoming increasingly visible in consumer goods prices.In particular, the costs for goods like appliances, sporting goods, toys, and apparel have risen sharply. Prices for appliances jumped by 1.9 per cent in June, marking the largest monthly increase since the pandemic’s peak in 2020. Similarly, toys saw a 1.4 per cent increase in June, continuing a trend from earlier in the year. The tariffs on steel and aluminium, which now apply to a wide array of derivative products such as washing machines, refrigerators, and dryers, have contributed significantly to these price hikes.Experts note that these increases are likely just the beginning, and the full impact of these tariffs may not be felt immediately due to businesses’ prior stockpiling of goods, but it will gradually show up on store shelves. Economists predict that the prices of imported goods will continue to rise throughout the year, potentially keeping overall inflation elevated.<h2>Labour market and consumer spending</h2>Despite the uptick in inflation, the broader economy has shown resilience. Employment data still points to job creation, and consumer spending remains relatively strong. On July 15, several of the largest US banks reported better-than-expected quarterly earnings, bolstered by steady demand for consumer loans and credit card spending. However, concerns are growing that inflation may start to affect consumer behaviour, especially for middle-income households.One concerning trend is the slowing growth in industries heavily reliant on immigrant labour, which could be linked to the ongoing immigration crackdown. A shrinking foreign-born labour force since March has contributed to slower job growth in sectors such as construction and hospitality. This trend has made it harder for businesses to fill low-wage positions, which could begin to weigh on overall employment figures in the coming months.In addition, some analysts are observing signs of spending weakness among lower-income Americans, with major banks such as JPMorgan noting declines in consumer confidence in certain income groups. However, spending patterns show that wealthier Americans are still thriving, propping up overall consumer demand and helping to cushion the economy against more significant downturns.The Yale Budget Lab recently estimated that tariffs have increased the average effective tariff rate on imported goods to 20.6 per cent, the highest level since 1910. While these tariffs are not immediately causing widespread price increases, Americans could face an effective $2,800 hit in annual household income due to higher costs on goods such as clothing, electronics, and furniture.<h2>Federal Reserve's dilemma</h2>The growing inflationary pressures come at a time when the Federal Reserve is caught in a delicate balancing act between fighting inflation and supporting economic growth. The June CPI data adds another layer of complexity to the Fed’s decision-making, especially as the central bank contemplates whether to continue interest rate cuts.While the core inflation—which excludes food and energy—rose 2.9 per cent over the past year, the increase was less severe than expected, suggesting that services inflation remains relatively subdued. Housing-related costs, such as rent and home prices, have cooled off, and prices for airfares and hotel rates were weak, possibly reflecting a pullback in discretionary spending. These factors could mitigate some of the pressures from the rising prices of goods.Some economists have noted that even though the CPI was in line with forecasts, the rise in inflation in June suggests that the Fed may pause its interest rate cuts. However, other experts suggested that the Fed may need to remain cautious, noting that there is strain on the middle-class consumer and calling for some relief to support household spending.As the Federal Reserve mulls over its next steps, some expect a rate cut later this year to help relieve financial pressures on middle-income families. But this raises the question of how much longer the US economy can maintain its growth trajectory under the weight of rising costs.<h2>Uncertainty and economic resilience</h2>With a number of economic inputs seeing price hikes and wage growth slowing, the outlook for the second half of the year remains uncertain. The stock market continues to perform well, with major indices hovering near all-time highs, but Treasury yields have risen sharply, with the 30-year bond yield surpassing 5 per cent for the first time since May. This signals growing concerns about long-term economic stability.The full impact of Trump’s trade war and tariff policies will likely take a few more months to fully materialise, but analysts caution that price increases could become a persistent feature in the economy. It’s clear that while the US economy has shown resilience so far, a prolonged period of rising inflation could become a significant challenge for policymakers, businesses, and consumers alike.

While the broader US economy has remained resilient, the growing costs of items like appliances, clothing, and electronics have pushed inflation to its highest level in four months, leading many to question how much longer the US can power through these pressures.

The US economy is showing signs of strain as the effects of President Donald Trump’s trade policies begin to make their mark. After months of uncertainty surrounding the administration’s sweeping tariffs, key consumer goods are starting to feel the pressure of higher import costs. As the tariff-induced price hikes gradually filter down to everyday products, economists are raising concerns about the long-term impact on household budgets and economic growth. While the broader economy has remained resilient, the growing costs of items like appliances, clothing, and electronics have pushed inflation to its highest level in four months, leading many to question how much longer the US can power through these pressures. Inflation in the United States spiked in June, with the consumer price index (CPI) rising by 0.3 per cent, marking the largest monthly gain since January, according to the data released by the Labor Department's Bureau of Labor Statistics on July 15. This pushed the annual inflation rate to 2.7 per cent, up from 2.4 per cent in May, in line with economists’ expectations. However, the most important thing to be noted here is that the increase in prices is being largely driven by goods exposed to tariffs, including appliances, clothing, and electronics, signalling a potential for sustained inflationary pressures. Tariff-driven inflation gains momentum The most recent CPI data provides a clear indication that tariffs imposed by President Trump’s administration are beginning to reach the consumers. While inflation had remained subdued in earlier months due to inventory stockpiles and declining energy prices, economists now warn that the full effects of these tariffs, especially on imports from China, are becoming increasingly visible in consumer goods prices. In particular, the costs for goods like appliances, sporting goods, toys, and apparel have risen sharply. Prices for appliances jumped by 1.9 per cent in June, marking the largest monthly increase since the pandemic’s peak in 2020. Similarly, toys saw a 1.4 per cent increase in June, continuing a trend from earlier in the year. The tariffs on steel and aluminium, which now apply to a wide array of derivative products such as washing machines, refrigerators, and dryers, have contributed significantly to these price hikes. Experts note that these increases are likely just the beginning, and the full impact of these tariffs may not be felt immediately due to businesses’ prior stockpiling of goods, but it will gradually show up on store shelves. Economists predict that the prices of imported goods will continue to rise throughout the year, potentially keeping overall inflation elevated. Labour market and consumer spending Despite the uptick in inflation, the broader economy has shown resilience. Employment data still points to job creation, and consumer spending remains relatively strong. On July 15, several of the largest US banks reported better-than-expected quarterly earnings, bolstered by steady demand for consumer loans and credit card spending. However, concerns are growing that inflation may start to affect consumer behaviour, especially for middle-income households. One concerning trend is the slowing growth in industries heavily reliant on immigrant labour, which could be linked to the ongoing immigration crackdown. A shrinking foreign-born labour force since March has contributed to slower job growth in sectors such as construction and hospitality. This trend has made it harder for businesses to fill low-wage positions, which could begin to weigh on overall employment figures in the coming months. In addition, some analysts are observing signs of spending weakness among lower-income Americans, with major banks such as JPMorgan noting declines in consumer confidence in certain income groups. However, spending patterns show that wealthier Americans are still thriving, propping up overall consumer demand and helping to cushion the economy against more significant downturns. The Yale Budget Lab recently estimated that tariffs have increased the average effective tariff rate on imported goods to 20.6 per cent, the highest level since 1910. While these tariffs are not immediately causing widespread price increases, Americans could face an effective $2,800 hit in annual household income due to higher costs on goods such as clothing, electronics, and furniture. Federal Reserve's dilemma The growing inflationary pressures come at a time when the Federal Reserve is caught in a delicate balancing act between fighting inflation and supporting economic growth. The June CPI data adds another layer of complexity to the Fed’s decision-making, especially as the central bank contemplates whether to continue interest rate cuts. While the core inflation—which excludes food and energy—rose 2.9 per cent over the past year, the increase was less severe than expected, suggesting that services inflation remains relatively subdued. Housing-related costs, such as rent and home prices, have cooled off, and prices for airfares and hotel rates were weak, possibly reflecting a pullback in discretionary spending. These factors could mitigate some of the pressures from the rising prices of goods. Some economists have noted that even though the CPI was in line with forecasts, the rise in inflation in June suggests that the Fed may pause its interest rate cuts. However, other experts suggested that the Fed may need to remain cautious, noting that there is strain on the middle-class consumer and calling for some relief to support household spending. As the Federal Reserve mulls over its next steps, some expect a rate cut later this year to help relieve financial pressures on middle-income families. But this raises the question of how much longer the US economy can maintain its growth trajectory under the weight of rising costs. Uncertainty and economic resilience With a number of economic inputs seeing price hikes and wage growth slowing, the outlook for the second half of the year remains uncertain. The stock market continues to perform well, with major indices hovering near all-time highs, but Treasury yields have risen sharply, with the 30-year bond yield surpassing 5 per cent for the first time since May. This signals growing concerns about long-term economic stability. The full impact of Trump’s trade war and tariff policies will likely take a few more months to fully materialise, but analysts caution that price increases could become a persistent feature in the economy. It’s clear that while the US economy has shown resilience so far, a prolonged period of rising inflation could become a significant challenge for policymakers, businesses, and consumers alike.

While the broader US economy has remained resilient, the growing costs of items like appliances, clothing, and electronics have pushed inflation to its highest level in four months, leading many to question how much longer the US can power through these pressures.

US economy faces growing pressure as tariffs begin to show impact

Gold prices rose on Tuesday as investors sought safe-haven assets amid mounting global trade tensions, while markets looked ahead to key US inflation data that could shape the Federal Reserve’s next interest rate move. Spot gold climbed 0.5 per cent to $3,359.01 per ounce as of 0635 GMT, while US gold futures gained 0.3 per cent to $3,368.20, according to Reuters.&nbsp;The precious metal’s steady rise underscores its traditional role as a hedge during geopolitical and trade-related uncertainty, with market watchers closely tracking President Donald Trump’s escalating tariff threats against major trading partners.<h2>Tariff tensions drive safe-haven demand</h2>US President Trump on Saturday threatened to impose a 30 per cent tariff on imports from Mexico and the European Union from August 1 if no trade deal is reached, intensifying fears of a fresh trade war that could dent global economic growth.&nbsp;Tim Waterer, Chief Market Analyst at KCM Trade, told Reuters that, “Gold has shown in the past that it is an asset of choice when tariff tensions are ratcheted up, and the precious metal’s move towards $3,350 is evidence of this pattern playing out again”. However, Waterer also cautioned that higher US Treasury yields, and a stronger dollar were creating headwinds for further gains, suggesting gold would need a retreat in yields or the dollar to break decisively towards $3,400.<h2>Inflation data in focus</h2>Investor attention is now squarely on the release of June’s US Consumer Price Index (CPI) data due later on Tuesday. A Reuters poll of economists expects annual headline inflation to have risen to 2.7 per cent in June, up from 2.4 per cent in May. Core inflation, which excludes volatile food and energy prices, is projected to climb to 3.0 per cent from 2.8 per cent.&nbsp;The inflation reading will be closely watched for clues about the Federal Reserve’s next move, as markets currently expect 50 basis points of interest rate cuts before the end of the year, with the first reduction anticipated in September.&nbsp;Trump on Monday renewed his attacks on Fed Chair Jerome Powell, arguing that interest rates should be 1 per cent or lower, further fuelling debate about the central bank’s future policy path. Gold traditionally performs well in a low interest rate environment, as lower yields reduce the opportunity cost of holding the non-yielding asset.<h2>Silver shines amid supply fears</h2>Elsewhere in precious metals, spot silver also gained 0.5 per cent to $38.32 per ounce after hitting its highest level since September 2011 on Monday.&nbsp;Waterer told Reuters that silver was benefiting not only from gold’s broader rally but also from its own supply concerns and strong industrial demand that, “Also, gold’s rise over the past 18 months has had investors looking elsewhere for value and silver has been one of the metals to rise as a result.”<h2>Broader precious metals market rises</h2>Platinum rose 1.1 per cent to $1,379.22 per ounce, while palladium gained 0.5 per cent to $1,200.01, according to Reuters data.&nbsp;As the global economy faces trade disputes, tariff threats and persistent inflation concerns, the broader precious metals market continues to find support among investors hedging against uncertainty. &nbsp;

With US CPI expected to show an uptick in June, investors are weighing the Fed next move, while higher yields and a stronger dollar pose near term risks to further gold gains. Silver also surged, supported by industrial demand and tight supply.

Gold prices rose on Tuesday as investors sought safe-haven assets amid mounting global trade tensions, while markets looked ahead to key US inflation data that could shape the Federal Reserve’s next interest rate move. Spot gold climbed 0.5 per cent to $3,359.01 per ounce as of 0635 GMT, while US gold futures gained 0.3 per cent to $3,368.20, according to Reuters. The precious metal’s steady rise underscores its traditional role as a hedge during geopolitical and trade-related uncertainty, with market watchers closely tracking President Donald Trump’s escalating tariff threats against major trading partners. Tariff tensions drive safe-haven demand US President Trump on Saturday threatened to impose a 30 per cent tariff on imports from Mexico and the European Union from August 1 if no trade deal is reached, intensifying fears of a fresh trade war that could dent global economic growth. Tim Waterer, Chief Market Analyst at KCM Trade, told Reuters that, “Gold has shown in the past that it is an asset of choice when tariff tensions are ratcheted up, and the precious metal’s move towards $3,350 is evidence of this pattern playing out again”. However, Waterer also cautioned that higher US Treasury yields, and a stronger dollar were creating headwinds for further gains, suggesting gold would need a retreat in yields or the dollar to break decisively towards $3,400. Inflation data in focus Investor attention is now squarely on the release of June’s US Consumer Price Index (CPI) data due later on Tuesday. A Reuters poll of economists expects annual headline inflation to have risen to 2.7 per cent in June, up from 2.4 per cent in May. Core inflation, which excludes volatile food and energy prices, is projected to climb to 3.0 per cent from 2.8 per cent. The inflation reading will be closely watched for clues about the Federal Reserve’s next move, as markets currently expect 50 basis points of interest rate cuts before the end of the year, with the first reduction anticipated in September. Trump on Monday renewed his attacks on Fed Chair Jerome Powell, arguing that interest rates should be 1 per cent or lower, further fuelling debate about the central bank’s future policy path. Gold traditionally performs well in a low interest rate environment, as lower yields reduce the opportunity cost of holding the non-yielding asset. Silver shines amid supply fears Elsewhere in precious metals, spot silver also gained 0.5 per cent to $38.32 per ounce after hitting its highest level since September 2011 on Monday. Waterer told Reuters that silver was benefiting not only from gold’s broader rally but also from its own supply concerns and strong industrial demand that, “Also, gold’s rise over the past 18 months has had investors looking elsewhere for value and silver has been one of the metals to rise as a result.” Broader precious metals market rises Platinum rose 1.1 per cent to $1,379.22 per ounce, while palladium gained 0.5 per cent to $1,200.01, according to Reuters data. As the global economy faces trade disputes, tariff threats and persistent inflation concerns, the broader precious metals market continues to find support among investors hedging against uncertainty.

Gold, silver, and platinum rose as US tariff threats and inflation fears drove safe-haven demand. Investors await CPI data and Fed signals, with Trump pushing for aggressive rate cuts.

Gold gains as trade tensions and US inflation data keep investors on edge