Gold prices continued their uptrend on Friday (04/07), poised to post gains of more than 1.50% for the week as the US Dollar weakened amid thin liquidity conditions following the US market closure to celebrate Independence Day. A minor escalation in the trade war boosted bullion prices. XAU/USD was trading at $3,333, up 0.26%.

US President Donald Trump said that they would start sending letters to countries on Friday, ahead of the July 9 deadline. He announced that some of the tariffs imposed would be in the range of 10% to 70% and would take effect on August 1. Regarding this, US Treasury Secretary Scott Bessent said that he expected a series of trade deals before July 9 and estimated that about 100 countries would accept a minimum reciprocal tariff of 10%. He added that they would announce some deals.

Expectations that the Federal Reserve (Fed) would keep interest rates on hold for some time limited Gold's rise. Data released on Thursday revealed that the US labor market posted solid numbers, although the bulk of the new job gains came from the government. Private hiring, on the other hand, was the smallest in eight months as businesses braced for an economic slowdown.

On the geopolitical front, Trump said that he had spoken with Russian President Vladimir Putin, who revealed that there was no progress in Ukraine and Russia. More recently, Trump told Ukrainian President Zelensky that he wanted to help with air defenses due to Russian attacks, via Axios.

Next week, the US economic agenda will remain light. Traders will await the release of the Federal Open Market Committee (FOMC) meeting minutes, followed by Initial Jobless Claims for the week ended July 5, and Fed speeches. (alg)

Source: FXstreet