Updated on: Aug 07, 2025 09:16 am IST
The metal has gained nearly 30% this year due to expectations of rate cuts and diversification from US dollar assets.
Gold held a moderate loss, as traders looked past uncertainty created by US President Donald Trump’s latest trade moves, including threatening a 100% tariff on chip imports.
Bullion was steady around $3,370 an ounce after a 0.3% decline in the previous session. This came after Trump said he would impose a 100% levy on semiconductor imports in a bid to force companies to move production back to the US.
Meanwhile, relations with key trade partners soured, with the US leader doubling the tariff on Indian goods to 50% over the South Asian country’s continued purchases of energy from Russia. Japan may also face higher duties than agreed last month on some products, Kyodo reported.
Traders also watched for Trump’s nomination within days of a temporary Federal Reserve governor who is expected to be more aligned with his agenda to ease monetary policy. Lower rates benefit gold, which doesn’t yield interest.
The precious metal’s recent rally has been driven by rising expectation of rate cuts. Central bank buying and a broad trend of diversifying away from US dollar-denominated assets have also offered support. It’s climbed nearly 30% this year, though the bulk of its gains happened in the first four months, as geopolitical and trade tensions rattled the market.
Gold was 0.1% higher at $3,373.45 an ounce as of 8:42 a.m. in Singapore. The Bloomberg Dollar Spot Index was steady. Silver, palladium and platinum all rose.
