FX.co ★ Gold Rebounds from 4-Week Low

Gold prices surged past $3,290 per ounce on Thursday, recovering from a decline of over 1% to reach a month-long low in the preceding trading session. This movement comes as global markets digest recent trade measures and recalibrate expectations regarding Federal Reserve policy directions. In a recent announcement, President Trump outlined new tariff actions, which include lifting exemptions on low-value imports and adjusting duties applied to copper and specific Brazilian imports. Additionally, Trump declared a 15% tariff on imports from South Korea and a 25% tariff on goods from India, though he noted that discussions with India remain ongoing. Concurrently, the Federal Reserve opted to maintain current interest rates, consistent with market anticipations. Fed Chair Jerome Powell emphasized that it is premature to contemplate rate cuts and refrained from providing substantial forward guidance on potential timing. Despite this, market players have adjusted their positions, now anticipating a 35 basis point rate cut by year's end. In parallel, investors processed stronger-than-predicted economic data from the U.S., with GDP growth and employment figures exceeding expectations. Attention now turns to forthcoming indicators, including the PCE inflation figures and jobless claims due on Thursday, with the July employment report set to be released on Friday.