Gold prices rose more than 1% on Thursday (July 31st), pulling away from a one-month low hit in the previous session, as a weaker dollar and the announcement of new US tariffs boosted demand for the safe-haven asset.

Spot gold rose 1.1% to $3,312.03 an ounce, as of 06:12 GMT. The bullion had hit its lowest level since June 30th at $3,267.79 on Wednesday. US gold futures rose 0.4% to $3,309. The dollar weakened from a two-month low, making gold cheaper for holders of other currencies.

"We had some significant declines in gold prices yesterday around the release of the FOMC statement and the tariff announcement. So, a slightly weaker US dollar is helping gold today," said UBS commodities analyst Giovanni Staunovo. Ahead of the August 1 deadline, US President Donald Trump announced new levies, ranging from renewed copper tariffs to taxes on goods from Brazil, South Korea, and India, as well as the removal of exemptions for small-value foreign shipments.

Meanwhile, Trump said on Wednesday that the US would impose a 15% tariff on imports from South Korea as part of a deal to avoid higher levies. He also expressed optimism about trade talks with China, stating that he hoped a fair deal would be reached.

On Wednesday, the US Federal Reserve kept interest rates steady, as widely expected, but Powell said it was too early to say whether the Fed would cut rates at its next meeting in September. Gold tends to perform well in a low interest rate environment.

Global gold demand, including over-the-counter (OTC) gold, rose 3% year-on-year to 1,248.8 metric tons in the second quarter of 2025 as investment surged 78%, according to the World Gold Council on Thursday. Focus now shifts to the US core PCE index data due later today, followed by US non-farm payrolls data on Friday for further clues on the Fed's interest rate direction.

Elsewhere, spot silver fell 0.5% to $36.95 an ounce, platinum rose 0.4% to $1,318.20, and palladium gained about 1% to $1,216.27. (alg)

Source: Reuters