Gold (XAU/USD) touched another fresh high overnight before easing slightly, with spot prices sitting at $3,429 an ounce by 10:00 GMT. The metal continues to build on a strong rally that began after hitting lows near $3,245.
Geopolitical instability, monetary policy uncertainty, and central bank accumulation remain the key themes supporting gold’s upward momentum. The ongoing conflict between Russia and Ukraine has shown no signs of resolution, sustaining pressure on European energy security and global supply chains.
Meanwhile, the US trade backdrop remains a source of anxiety for markets. With less than ten days until the August 1 tariff deadline, the Trump administration has offered little sign of delay. Proposed US tariffs, ranging from 20% to 50%, have drawn criticism and threats of retaliation from major trading partners, particularly the European Union.
At the same time, investors are watching the Federal Reserve closely. Although the dollar has cooled slightly, markets still expect the Fed to keep interest rates unchanged at its next meeting. However, speculation continues to swirl around the Fed’s independence, as reports suggest Trump may be considering the removal of Fed Chair Jerome Powell.
Together, these factors are reinforcing gold’s traditional role as a defensive asset. While some profit-taking has emerged after the recent surge, broader demand remains well supported by global uncertainty.