Earlier this week, the U.S. central bank left interest rates unchanged in 4.25%-4.50% range, with Fed Chair Jerome Powell saying it’s too soon to say whether the central bank will cut its interest rate target in September.
“We’ve got a situation where we have inflationary pressures continuing from tariffs and wages, yet job numbers are disappointing. So in that situation, if the Fed cuts (rates), that’s going to have material impact on gold in a positive way,” Melek added.
On the trade front, Trump’s latest wave of tariffs on exports from dozens of trading partners, including Canada, Brazil, India and Taiwan, sent global markets tumbling as countries pushed for talks to clinch better deals.
Safe-haven gold thrives during economic and geopolitical turmoil.
Spot silver was up 0.5% to $36.94 per ounce, platinum added 1.1% to $1,303.43 and palladium gained 1.2% at $1,205.58.
