Spot Gold scaled a three-week peak of $3,375.08 on Monday, after fresh tariff threats by US President Donald Trump, which spurred demand for safe-haven assets.
He threatened over the weekend to impose a 30% tariff on imports originating from Mexico and the European Union, beginning on August 1st, as trade negotiations failed to produce a comprehensive deal.
Both the European Union and Mexico stated that the tariffs were unfair and disruptive.
“We are seeing safe-haven demand coming back into the picture due to this uncertainty on the implementation of U.S. global trade tariffs policy,” OANDA’s senior market analyst Kelvin Wong was quoted as saying by Reuters.
“Near-term outlook looks positive for gold and if gold prices are able to have a daily close above $3,360, it could potentially advance higher towards the next resistance level at $3,435.”
Market players now awaited the key US CPI inflation data that may provide further clues over the Federal Reserve’s monetary easing path.
Markets are now pricing in a bit more than 50 basis points of Fed rate cuts by year-end.
Spot Gold was last up 0.44% on the day to trade at $3,370.48 per troy ounce.
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