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Gold Rises on Trump Tariff Threat; Platinum, Silver Outshine

Gold prices edged higher on Thursday, lifted by renewed safe-haven demand following U.S. President Donald Trump's fresh tariff threats. Investors flocked to precious metals as geopolitical and trade uncertainty reemerged, pushing silver and platinum to outperform gold in relative gains. Investing.com

Spot gold rose 0.6% to $3,342.50/oz during early trading hours, marking its second consecutive day of gains. Meanwhile, August gold futures climbed 0.7% to settle at $3,353.10/oz. The move follows Trump's announcement of potential tariffs on a broader range of imports, a statement that reignited global risk-off sentiment.

Trade Tensions Fuel Metal Demand

Trump’s remarks come amid stalled negotiations with key trading partners, with analysts warning of escalating tensions that could affect supply chains and global economic momentum. The tariff threats prompted a shift from risk assets to traditional safe havens like precious metals, helping drive gold prices higher.

However, silver and platinum led the rally, gaining 1.5% and 1.8%, respectively. Analysts point to increasing industrial demand and supply constraints for these metals, in addition to their role as alternative stores of value. The Economic Times

“Silver and platinum are benefiting from a dual dynamic,” said a senior commodities analyst. “Not only are they safe-haven assets, but they also have strong industrial links, making them attractive during economic uncertainty paired with production concerns.”

Dollar Steady, Yields Subdued

The U.S. dollar held steady against a basket of major currencies, while Treasury yields dipped slightly, supporting the bullish trend in metals. A weaker yield environment makes non-interest-bearing assets like gold more appealing.

Market participants are also watching for clues on the Federal Reserve’s policy outlook, with rate cuts still being debated due to mixed economic indicators and ongoing geopolitical stressors. The Business Times

Outlook Remains Bullish

Gold remains in a bullish trend technically, supported above key moving averages. Analysts expect continued upside if geopolitical risks persist and central banks maintain accommodative stances.

Meanwhile, platinum and silver may continue to outperform in the near term, especially if global manufacturing indicators weaken, prompting further investor hedging in metals.

 

 

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