Gold (XAU/USD) crept higher in Asian trade, nudged along by a fresh wave of tariff nerves and escalating geopolitical tension.
President Trump’s recent barrage of tariffs, hitting Mexico, the EU, Japan, South Korea, Brazil, and copper imports, has investors seeking cover in bullion as the August 1 deadline approaches. With no signs of Washington easing off, gold’s safe-haven appeal is getting a boost.
Adding fuel to the fire, reports that Trump plans to send offensive weapons to Ukraine have heightened geopolitical uncertainty, further bolstering demand for the yellow metal. Yet, the dollar’s resilience ahead of Tuesday’s US inflation data is keeping a lid on gains.
Technically, gold is edging closer to a breakout, a move that could open the door for fresh upside if tariff threats intensify or geopolitical risks flare further.
But for now, the metal remains contained, balancing between safe-haven bids and dollar pressure as investors await clearer signals on inflation and trade.
Spot gold was trading at $3,372.11 an ounce by 09:00 GMT.