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Gold Hits Five-Week High On Trade Concerns And Falling Bond Yields
Wednesday, 23 July 2025 01:51 WIB | GOLD |GOLDEMAS

Gold rose to a five-week high on Tuesday (July 22), boosted by trade uncertainty and weakening U.S. bond yields as investors continued to monitor U.S. President Donald Trump's tariff deadline on August 1.

Spot gold rose 1% to $3,428.84 an ounce at 2:10 p.m. ET (18:10 GMT), reaching its highest level since June 16. U.S. gold futures rose 1.1% to $3,443.70. The yield on the benchmark 10-year U.S. Treasury note fell to a near two-week low, making non-yielding bullion more attractive.

Trade uncertainty boosted demand for safe-haven assets. "The US is working on several trade deals, and there are rumors that the EU and the US may not reach a deal or are not even close," said Jim Wyckoff, senior analyst at Kitco Metals.

Treasury Secretary Scott Bessent said on Tuesday he would meet with his Chinese counterpart next week, hinting at a possible extension of the August 12 tariff deadline. He added that the US is ready to announce "a series of trade deals" with other countries.

Meanwhile, EU diplomats have hinted that the EU is considering broader retaliatory measures against the US as the prospects for a trade agreement fade.

"Gold is likely to remain bullish. Strong resistance is seen near $3,420. "On the other hand, $3,350 is a support level," said Jigar Trivedi, senior commodities analyst at Reliance Securities. Investors are also preparing for next week's Federal Reserve meeting. Although the Fed is expected to keep interest rates unchanged, the market is eyeing a potential rate cut in October.

Gold, traditionally considered a hedge during times of uncertainty, also tends to perform well in a low interest rate environment. Bessent also said on Tuesday that Fed Chairman Jerome Powell does not need to resign immediately, a day after calling for a review of the central bank as an institution. Meanwhile, Fed Vice Chair Michelle Bowman underscored the importance of central bank independence amid increasing pressure from Trump to lower borrowing costs.

Spot silver rose 0.6% to $39.16 an ounce, platinum fell 0.5% to $1,431.64, and palladium rose 1.4% to $1,282.82. (alg)

Source: Reuters

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