After a brief pause in recent weeks, the price of %Gold has resumed its upward trend as the U.S. dollar continues to sink lower.
The spot price of gold has gained nearly 1% in recent trading sessions to trade at $3,328.70 U.S. per ounce.
The price of gold bullion is also getting a lift from expectations for U.S. interest rate cuts later this year and as U.S. President Donald Trump renews his tariff threats on other nations.
The U.S. dollar index has slipped a further 0.2% against other world currencies, making gold less expensive to buy and hold for foreign investors.
The U.S. dollar has suffered its steepest decline this year since 1973 when America abandoned the gold standard and decided to let its currency float.
Investors are again seeking the safety of gold as President Trump renews his tariff campaign, threatening a 50% levy on copper imports and a 50% duty on goods from Brazil.
At the same time, minutes from the U.S. Federal Reserve’s June 17-18 meeting show that only “a couple” of officials believe that interest rate cuts should happen in July, with most concerned about a rise in inflation sparked by President Trump’s tariffs.
Gold, which is widely viewed as a hedge against inflation and geopolitical uncertainty, benefits from lower interest rates.
The Federal Reserve’s Open Market Committee unanimously voted to hold rates steady at its June meeting. The central bank’s next policy meeting is scheduled for July 29-30.
