Tuesday, 22 July 2025
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Gold surges above $3,390 as US dollar and Treasury yields slide on trade concerns and Fed independence
Tuesday, 22 July 2025 01:41 WIB | GOLD |GOLDEMAS

Gold prices surged more than 1% on Monday (July 21st) as the US dollar and US Treasury yields fell sharply amid uncertainty over a trade deal, amidst overall risk sentiment in the market. At the time of writing, XAU/USD was trading at $3,397 after bouncing off a daily low of $3,338.

Risk appetite improved as traders awaited the release of US financial reports. Meanwhile, the August 1st deadline for tariffs imposed by the White House is approaching, making investors uneasy about the trade deal between the US and its three major trading partners, including the European Union (EU), Canada, and Mexico.

Trade news revealed that EU envoys will meet as early as this week to formalize a retaliatory plan in the event of a possible no-deal scenario with US President Trump, according to Bloomberg.

The Wall Street Journal reported that US Treasury Secretary Bessent recommended that Trump not fire Fed Chairman Jerome Powell, as it would raise doubts about the independence of the Federal Reserve (Fed). This would trigger a market reaction, depressing the US dollar and raising US Treasury yields.

Other news revealed that the People's Bank of China (PBOC) maintained its key lending rate at its latest meeting, as expected.

This week, US economic data remains limited with the release of housing data, Jobless Claims for the week ending July 19, and Durable Goods Orders data. (alg)

Source: FXstreet

RELATED NEWS
Gold Rises as Traders Assess Impact of Tariffs on Inflation and Interest Rates ...
Monday, 21 July 2025 23:11 WIB

Gold rose to its highest level in more than a month as traders assessed the impact of tariffs on inflation and interest rates in the absence of relevant economic data. The dollar and bond yields weak...

Gold surges as the Dollar retreats on rising EU-US trade tensions...
Monday, 21 July 2025 21:35 WIB

Gold (XAU/USD) is benefiting from renewed trade tensions on Monday, which have triggered demand for the safe-haven yellow metal. As the August 1 tariff deadline looms, prospects of a deal between the...

Gold prices rise amid uncertainty over U.S. trade negotiations...
Monday, 21 July 2025 18:38 WIB

Gold prices rose slightly in European trade on Monday, taking some support from haven demand fueled by persistent uncertainty over elevated U.S. tariffs set to take effect in the coming weeks. A mild...

Gold gains on softer dollar as investors await US trade updates ...
Monday, 21 July 2025 13:39 WIB

Gold prices climbed on Monday, supported by a weaker dollar as investors monitored developments in U.S. trade talks and awaited potential market-moving catalysts, including the Federal Reserve's polic...

Gold steady as investors await US trade updates, central bank meetings ...
Monday, 21 July 2025 11:20 WIB

Gold prices were little changed on Monday as investors monitored developments in U.S. trade talks and awaited potential market-moving catalysts, including the U.S. Federal Reserve's policy meeting sch...

LATEST NEWS
EUR/USD Surges Above 1.1690 As Trade Tensions Weigh On The USD Ahead Of The ECB Meeting

The EUR/USD pair surged on Monday (July 22nd), gaining more than 0.50%, as the US dollar weakened, pressured by falling US Treasury yields and trade uncertainty ahead of the August 1st deadline. This triggered an outflow of the greenback, as the...

Us Dollar Weakens, Powell Faces Perjury Charges

The US dollar (USD) started the week weaker, weakening against other major currencies in trading on Monday (July 22). Investors reacted to renewed trade tensions ahead of the August 1 deadline and generally cautious market sentiment. Although US...

S&P 500 and Nasdaq Rally to Record Highs on Earnings

US stocks rallied on Monday (July 21), with the S&P 500 and Nasdaq hitting new record highs as a strong start to the earnings season overshadowed concerns about impending tariffs. The Dow Jones Industrial Average rose more than 200 points,...

POPULAR NEWS
Asia markets trade mixed as investors assess trade developments, await China benchmark rates
Monday, 21 July 2025 07:45 WIB

Asia-Pacific markets traded mixed Monday, as investors keep a close watch on the People's Bank of China's decision on its 1-year and 5-year loan...

European Stocks Cautious
Monday, 21 July 2025 14:47 WIB

European stocks opened the week on a cautious note, with both the STOXX 50 and STOXX 600 hovering near the flatline as investors closely monitor...

Russia Strikes Ukraine With Drones and Missiles, Killing One
Monday, 21 July 2025 09:45 WIB

Russia unleashed a renewed attack on Ukraine, targeting the country's central and western regions with drone and missiles as Kyiv's allies pledged...

U.S. plays hardball on tariffs deadline as EU battles for a deal
Monday, 21 July 2025 18:32 WIB

The U.S. has signaled it will not let up on its Aug. 1 deadline for higher tariffs on the European Union as the bloc fights to strike a deal in...