Background on Key Figures and Context
The recent surge in gold prices can be attributed to several factors, including the weakening US dollar, ongoing uncertainty surrounding US tariffs, and concerns about fiscal policies in the United States—the world’s largest economy. These elements have fueled investor interest in safe-haven assets like gold.
Donald Trump, the former US President, has expressed frustration with trade negotiations between the United States and Japan. Meanwhile, Scott Bessner, the US Secretary of the Treasury, has warned that countries may face significantly higher tariffs as the July 9 deadline approaches, despite ongoing negotiations.
Market Factors Driving Gold’s Rise
The US dollar has weakened to its lowest level since early 2022, making gold more affordable for buyers using other currencies. Ricardo Evangelista, an analyst at ActivTrades, explained that “the appeal of gold as a safe haven is being driven by concerns over US fiscal outlook and the continued uncertainty surrounding tariffs, as the Trump administration keeps all options open before the looming July deadline.”
Investors are also keeping a close eye on the upcoming vote regarding President Trump’s broad tax-cut-and-spending bill, adding to an already uncertain market environment.
Expert Insights on Gold’s Future
“I expect prices to rise in the short term, attracting additional buying interest as they approach $3,350, with the next significant resistance level around $3,370,” Evangelista added.
Impact on Other Precious Metals
Alongside gold, other precious metals have experienced price movements:
- Silver: Spot silver prices increased by 1.1% to $36.49 per ounce.
- Platinum: Platinum prices fell by 0.7% to $1,343.51 per ounce.
- Palladium: Palladium prices rose by 1.5% to $1,114.30 per ounce.
Key Questions and Answers
- What is driving the rise in gold prices? The weakening US dollar, uncertainty surrounding US tariffs, and concerns about fiscal policies in the United States have all contributed to increased investor interest in gold as a safe-haven asset.
- Who are the key figures mentioned in this article? The key figures mentioned are former US President Donald Trump and US Secretary of the Treasury Scott Bessner.
- How are other precious metals performing alongside gold? While gold prices have risen, silver prices increased by 1.1%, platinum prices fell by 0.7%, and palladium prices gained 1.5%.
