Gold prices rose on Tuesday (July 15th) as concerns over a global trade war fueled demand for safe-haven assets, while investors awaited key US inflation data.

Spot gold rose 0.5% to $3,361.39 per ounce, as of 08:16 GMT. US gold futures rose 0.3% to $3,370.40. The US dollar (.DXY), opened in a new tab, fell 0.1%, making gold cheaper for buyers holding other currencies.

"Gold strengthened as bullish investors looked to capitalize on the slightly weaker dollar today," said Han Tan, chief market analyst at Nemo.Money.

"Gold is enjoying a multitude of supporting factors, ranging from expectations of a Fed rate cut, US President Donald Trump's tariff threats, and ongoing geopolitical and economic risks." The European Union on Monday accused the US of rejecting efforts to reach a trade deal and warned it would take retaliatory action if no agreement is reached to avoid the heavy tariffs Trump has threatened to impose starting August 1.

Trump escalated his trade war on Saturday, announcing 30% tariffs on most EU and Mexican imports, after issuing similar warnings to other trading partners.

Meanwhile, the US consumer price index (CPI) report, due at 12:30 GMT, could provide investors with further guidance on the direction of Federal Reserve policy. US consumer prices likely rose in June, potentially marking the start of a long-anticipated increase in inflation due to tariffs that have made the Fed cautious about continuing interest rate cuts. Markets currently anticipate a 48 basis point rate cut by the end of this year, starting in October.

Elsewhere, spot silver rose 0.5% to $38.31 an ounce, after hitting its highest level since September 2011 on Monday. "If the current gold-to-silver price ratio holds, with gold prices above $3,440/oz, we will see silver above $40/oz," said Nitesh Shah, commodity strategist at WisdomTree. Platinum rose 0.2% to $1,366.30, while palladium fell 0.3% to $1,189.69. (alg)

Source: Reuters