Gold is gradually rising after yesterday's declines
Gold prices gradually rose again to reach about 3,340 dollars per ounce, after a two-day decline and approached the levels of 3,320 dollars per ounce yesterday, as investors assessed the latest economic developments, especially with regard to high US inflation and ongoing trade concerns.
Rising inflation increases pressure on monetary policy
Recent data showed that the Consumer Price Index in June recorded the highest pace of growth in five months, raising concerns that import tariffs are starting to contribute to increasing inflationary pressures.
Despite this, US President Donald Trump called on the Fed to cut interest rates to support economic growth, Fed officials warned against Rapid Action, citing the risks of rising inflation.
The market's attention is now turning to the PPI report, which may provide more clarity on price trends and inflationary pressures in the US economy.
The continuation of trade tensions raises the demand for gold
Trade concerns continue to cast a shadow on the markets, especially after Trump announced the imposition of new tariffs of 19% on goods coming from Indonesia, while threatening to send notices of tariff increases to other countries.
The US president had previously threatened to impose 30% tariffs on imports from Mexico and the European Union from August 1, but later expressed openness to dialogue.
These developments increase the uncertainty in the markets, which strengthens the demand for gold as a safe haven in times of economic turmoil.
Central banks continue to strengthen their gold reserves
The World Gold Council revealed that the net purchases of gold by central banks reached 20 tons in May, with Kazakhstan, Turkey, Poland and Singapore leading the purchases.
China also continued to strengthen its reserves, increasing its purchases in June, bringing the total it has bought since November to 34.2 tons.
It is noteworthy that the trend of central banks to increase gold reserves reflects an effort to diversify assets and hedge against global economic fluctuations, which may support prices in the long term.
