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Gold ticks up as dollar weakens and trade tensions rise
Spot gold rose 0.3% to over $3,322 per ounce

Gold ticks up as dollar weakens and trade tensions rise

Jul 10, 2025
10:15 am

What's the story

Gold prices witnessed a slight increase on Thursday, driven by a dip in the dollar and bond yields. The rise comes amid heightened trade tensions as US President Donald Trump intensifies his tariff war strategy. Spot gold rose 0.3% to $3,322.46 per ounce while US gold futures also gained 0.3%, reaching $3,331 per ounce.

Tariff expansion

New tariffs on copper imports

On Wednesday, Trump announced a new 50% tariff on US copper imports as well as goods from Brazil, both effective from August 1. He also issued tariff notices for seven minor trading partners on Thursday, adding to 14 others earlier this week, including South Korea and Japan. These tariffs would be levied at 25% unless agreements are reached by August 1.

Market reaction

Trade talks with China, EU are going well: Trump

Despite the aggressive tariff strategy, Trump claimed that trade talks with China and the European Union were going well. However, Matt Simpson, a senior analyst at City Index, said, "The market impact of tariffs seems to lessen with each new headline." He added that "tariff fatigue is here," and traders are looking for a new catalyst to spark volatility from its lull.

Economic factors

US dollar dips; Fed's rate cut views minutes released

The US dollar index fell 0.3%, while the yield on benchmark 10-year US Treasury notes fell from a three-week high. Lower yields make holding non-yielding bullion less costly, while a weaker dollar makes gold cheaper for holders of other currencies. Minutes from the Federal Reserve's June meeting revealed that only "a couple" of Fed officials thought interest rate cuts could happen as early as this month due to inflation concerns tied to Trump's tariff policies.