Gold Firms Near Four-Week High

Gold held firm above $5,180 per ounce on Thursday, extending gains from the previous session and hovering near an almost four-week high, as markets weighed geopolitical tensions and uncertainties surrounding US trade policies. The buildup of US troops in the Middle East kept investors on edge ahead of nuclear talks in Geneva, while Washington stepped up pressure on Iran by sanctioning entities involved in oil and weapons exports. At the same time, the Trump administration moved to maintain its global tariff strategy, raising concerns among trading partners. Trade Representative Jamieson Greer said the president plans to raise tariffs to 15% “where appropriate,” following a 10% levy that took effect after the Supreme Court struck down earlier reciprocal tariffs. On the monetary policy front, persistent inflation concerns pushed traders to delay expectations of the Federal Reserve’s next rate cut to September.

Gold rose to around $5,180 per ounce on Wednesday, recouping most of the previous session’s losses, supported by trade and geopolitical uncertainty. US President Trump’s new 10% global tariff came into effect on Tuesday, with his administration seeking to hike it to 15% in an effort to rebuild its tariff agenda after the Supreme Court invalidated much of his sweeping levies. On Monday, Trump warned that higher tariffs could be imposed on countries that “play games” with recent trade agreements. Meanwhile, investors are watching the continuation of US-Iran nuclear talks on Thursday, with Iran vowing on Tuesday to do “whatever it takes” to secure a deal with Washington. However, gains in bullion were limited by fading expectations of near-term Federal Reserve rate cuts. Two Fed officials said on Tuesday that they see no immediate need to adjust monetary policy, citing improving labor market conditions and persistent inflation.

Gold fell nealry 2% to around $5,130 per ounce as a rotation into US Treasuries overshadowed traditional safe-haven demand. While the 10-year Treasury yield dropped below 4.05% due to fears that AI advances will disrupt software and payment sectors, gold’s rally stalled as the yield curve flattened and markets lowered expectations for a Federal Reserve rate cut. Volatility remains high as a 10% global tariff took effect today while the White House prepared a formal order to increase that rate to 15%. This trade emergency prompted European and Asian economies to consider suspending existing deals with the US even as nuclear talks with Iran are set to resume this Thursday. Despite these escalating geopolitical risks and trade frictions, investors are currently prioritizing fixed income as they await Nvidia’s earnings and monitor potential shifts in financial infrastructure. Gold remains caught between these safe-haven inflows and the pressure of a stronger dollar.