Gold prices rise after Trump announces new tariffs
The global gold markets witnessed a significant rise on Monday,as the price of the ounce reached about 3,360 dollars, marking the fourth consecutive session of gains. This rise came as a direct reaction to former US President Donald Trump's announcement of new tariffs on the European Union and Mexico, which usually enhance the attractiveness of the precious metal as a safe haven, prompting investors to seek safe havens such as gold.
Details of the new customs decisions
Trump announced a series of protectionist measures including:
- Imposition of 30% customs duties on both the European Union and Mexico.
- Classification of trade deficits with these countries as a major threat to US national security.
- Additional customs increases by 50% on copper imports.
These measures come in addition to the series of tariff increases announced last week that affected more than 20 countries, including major economies such as Japan, South Korea, Canada, and Brazil.
These measures are scheduled to enter into force from August 1, 2023.
The impact of decisions on gold markets
Protectionist measures and uncertain geopolitical factors usually push investors to:
- Shift towards safe assets such as gold.
- Increased demand for gold bullion.
- Rising prices in the short and medium term.
Economic factors affecting gold
Investors are closely watching several key US economic indicators this week, including:
- Consumer Price Index (CPI)
- Producer price index (PPI)
- Industrial production
- Retail sales
These indicators may provide clearer signals about the upcoming decision of the Federal Reserve on interest rates, a decisive factor that directly affects gold prices.
Trump's statements about the Federal Reserve
Trump sparked a new controversy with his statements on Sunday expressing his desire for the resignation of Federal Reserve Chairman Jerome Powell, as Trump again threatened the independence of the central bank and called for a reduction in interest rates.
Market forecasts and analytics
Current forecasts indicate the expectation of monetary easing by the Fed by about 50 basis points by December.
The market's reaction was relatively limited after Trump's remarks, which may indicate that it was considered a negotiating maneuver.
Investors are focused on the inflation data for June, which is scheduled for release tomorrow, Tuesday.
