The Gold price ( XAU/USD) trades with mild gains near $3,350 during the early Asian session on Monday. Uncertainty around trade talks is likely to support Gold's safe-haven demand as a tariff deadline with the US looms. Traders will take more cues from the speech from Federal Reserve (Fed) Chair Jerome Powell later on Tuesday.
US Commerce Secretary Howard Lutnick said on Sunday that August 1 is the deadline for countries to begin paying tariffs to the US. President Donald Trump's tariff deadline has shifted since he announced his steep levies on trading partners on April 2, but White House officials now maintain that August 1 is a firm deadline.
The uncertainty and concerns over the new tariff rates could boost the yellow metal, as it's seen as the ultimate safe-haven asset during uncertain times.
Additionally, the dovish remarks from the Fed officials might lift a non-yielding asset. Fed Governor Christopher Waller said on Thursday he continues to believe the US central bank should cut interest rates at the July meeting amid mounting risks to the economy. Analysts expect the Fed will maintain its current rates at the end of this month, with a chance standing at 94% for a hold and 6% for a 25 basis points (bps) rate cut.
On the other hand, the renewed US Dollar (USD) demand might weigh on the USD-denominated Gold price in the near term. The University of Michigan's (UoM) preliminary Consumer Sentiment Index rose to 61.8 in July from 60.7 in June. This reading came in stronger than the market expectation of 61.5.
Source: FXStreet
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