Gold prices crept higher in Asian trading on Thursday, aided by growing safe-haven demand after fresh tariff threats from U.S. President Donald Trump and renewed bets on a Federal Reserve interest rate cut after a string of weak U.S. economic data.
Spot Gold edged up 0.2% to $3,375.25 an ounce, while Gold Futures for December gained 0.3% to $3,440.70/oz by 01:45 ET (05:45 GMT).
Trump threatens semiconductor tariffs, increases duty on India Investor appetite for bullion strengthened after Trump said the U.S. would impose a 100% tariff on imported semiconductors from certain countries unless they invest in American chip manufacturing.
The policy aims to boost domestic production but sparked concerns over further disruptions to global supply chains and higher inflation.
Trump also signed an order, doubling U.S. tariffs on imports from India to 50%, citing the country’s purchase of Russian oil.
In a post on Truth Social late Wednesday, Trump said reciprocal tariffs would take effect at midnight, keeping investors on edge.
The prospect of rising input costs and trade friction supported demand for gold, traditionally seen as a hedge against inflation and market volatility.
Markets scale up Fed rate cut bets for Sept Bullion also found support in expectations that the Federal Reserve may begin cutting interest rates as early as September.
Data released this week showed the U.S. services sector slowed in July, which followed last week’s disappointing nonfarm payrolls data.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Markets are now pricing in a 95% chance of a rate cut in September, according to CME’s FedWatch Tool.
Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold.
Recent speeches by Fed policymakers suggested that the central bank was leaning towards a cut, but uncertainty persists on tariff-driven inflation concerns.
Metal markets mixed; China trade data in focus Elsewhere, Platinum Futures fell 0.4% to $1,348.95/oz, while Silver Futures jumped 0.7% to $38.158/oz.
Benchmark Copper Futures on the London Metal Exchange were steady at $9,698.65 a ton, while U.S. Copper Futures edged up 0.2% to $4.42 a pound.
Investors also assessed Chinese trade balance data, showing a surge in exports amid signs of easing U.S.-China trade tensions.
