FX.co ★ Gold Holds Losses

Gold remained steady at approximately $3,300 per ounce on Wednesday, following a significant decline of more than 1% in the previous session. This stability comes as a result of a cautious approach by the Federal Reserve, which balanced out worries about renewed trade tensions. President Donald Trump dismissed the possibility of extending the August 1 tariffs and introduced widespread new measures, including a 50% tariff on copper imports, the potential imposition of 200% duties on pharmaceuticals, and a 10% levy on goods from BRICS nations. At the same time, after last week's strong US employment report alleviated concerns about an economic slowdown, expectations for a rate cut in July by the Fed were reduced. Furthermore, the new tariffs are anticipated to raise US inflation in the coming months, thereby restricting the potential for additional rate cuts. Investors are now eagerly awaiting the release of the June Federal Open Market Committee (FOMC) meeting minutes for further clarity on the Fed's policy direction. In other news, the Perth Mint announced that gold yielded a 41% gain in USD terms over its complete fiscal year of 2024-2025.