The price of gold rose to its highest level in five weeks during Tuesday’s trading session because investors chose safe-haven assets when trade tensions increased and U.S. bond yields dropped. Spot gold prices increased by 1% to reach $3,427.59 per ounce which became its highest point since mid-June while U.S. gold futures prices rose 1.2% to $3,442.50. The decline in 10-year Treasury yields made bullion more attractive to investors.
The August 1 tariff deadline announced by President Trump has become the main focus for investors because U.S. trade negotiations remain unresolved. Secretary of the Treasury Scott Bessent indicated that China might receive tariff deadline extensions while suggesting multiple new trade agreements will be announced soon. EU officials stated they will establish extensive countermeasures against Washington if their trade negotiations reach an impasse.
Reliance Securities analyst Jigar Trivedi explained that gold prices showed positive trends while identifying $3,420 as a crucial resistance level and $3,350 as a support level. The metal remains supported by market analysts who predict the Federal Reserve will maintain its current interest rate policy during its upcoming meeting while anticipating future rate cuts throughout the year.
The political environment surrounding monetary policy became more tense because of public statements from Fed Vice Chair Michelle Bowman and Treasury Secretary Scott Bessent about central bank independence and Chair Jerome Powell’s position. The prices of silver increased by 0.7% while platinum decreased by 0.1% and palladium rose by 1%.
