Gold (XAU/USD) prices bounced back on Thursday, rising to $3,305 an ounce by 09:00 GMT after dipping as low as $3,267 on Wednesday.
The rebound comes as markets grow nervous ahead of the August 1 tariff deadline set by President Donald Trump.
After briefly easing earlier this week on signs of trade progress, safe-haven demand resurfaced as Trump ramped up tariff actions. A trade deal with South Korea will see a 15% levy imposed, while India faces a 25% tariff from Friday, having failed to reach an agreement. Brazilian exports are subject to duties as high as 50%.
Trump is expected to sign executive orders on Thursday targeting countries that haven’t struck deals, fuelling renewed uncertainty and pushing investors back into gold.
However, gains were capped by Wednesday’s Federal Reserve decision. The central bank held interest rates steady at 4.25%–4.50%, as widely expected, and signalled little appetite for a September cut. Chair Jerome Powell gave no guidance on when easing might resume, while dissenting votes from Governors Bowman and Waller pointed to internal disagreement over the policy path.
The Fed’s hawkish tone saw gold hit a one-month low on Wednesday, as higher interest rates reduce the appeal of non-yielding assets like gold.
Looking ahead, markets are watching key US economic data due later today, including Core PCE, Employment Cost Index, and jobless claims, for clues on inflation and labour market trends that could influence the Fed’s next move.