Gold prices climbed to approximately $3,330 per ounce on Friday, marking a third consecutive session of gains. This increase was driven by a surge in safe-haven demand amidst rising trade tensions. President Donald Trump announced a 35% tariff on Canadian imports effective August 1, while indicating potential 15–20% tariffs on a majority of other trading partners. These developments came in the wake of earlier threats directed at Brazil and the proposed imposition of tariffs on copper, semiconductors, and pharmaceuticals. In parallel, Trump's advocacy for a 300 basis points reduction in the Federal Reserve's funds rate has sparked speculation about the appointment of a dovish Federal Reserve nominee in the coming year and heightened concerns regarding long-term inflation expectations.
On the economic data front, initial jobless claims fell short of forecasts for the fourth consecutive week, bolstering the perception of a robust labor market following the previous week's strong non-farm payroll report. Although markets continued to anticipate two rate cuts this year, rate futures indicate a consensus for maintaining the current rates at the forthcoming meeting. By week's end, gold is poised to finish with minimal change.
