Gold prices jumped in the United States as investors reacted to demand for gold grows rising trade uncertainty and a weaker dollar. This increase came after the U.S. Treasury Secretary emphasized that President Trump would enforce tariff threats unless trade partners show cooperation.
As trade tensions rise, demand for gold grows. Many investors seek safer options, and gold remains a popular choice. The recent shift in the U.S. dollar’s value played a major role in this development. A softer dollar makes gold more affordable for foreign buyers. Consequently, U.S. spot gold rose to $3,216.29 per ounce. Gold futures also climbed 1% to reach $3,219.20.
However, the gold market recently faced a downturn. Last week, prices dropped over 2%, marking the worst week since last November. Investors then showed more confidence due to progress in the U.S.-China trade agreement. That confidence reduced interest in safe-haven assets like gold.
This week, market sentiment reversed again. One reason is the U.S. credit rating downgrade by Moody’s. This move reduced confidence in U.S. financial stability. Investors reacted by shifting funds into gold. This shift drove up gold demand and, as a result, prices increased once more.
Trade tensions remain high. Treasury Secretary Scott Bessent confirmed that Trump would act against countries that refuse to negotiate fairly. He noted that tariffs will be imposed if talks fail. This warning unsettled global markets. Investors now expect more economic volatility. As a result, safe-haven assets such as gold attract even more attention.
The focus keyphrase “demand for gold grows” reflects the central trend. Investors worldwide look for stability. Gold, which traditionally thrives during uncertainty, stands out once again.
In the background, U.S. economic data showed mixed results. Producer prices dropped unexpectedly, while retail sales growth slowed. Meanwhile, consumer prices rose below expectations. These figures added pressure on the U.S. Federal Reserve to consider interest rate cuts in the coming months.
Analysts now speculate about a possible rate cut in July or September. Market expert Tim Waterer suggested that trade talks could influence the timing of that decision. He believes any progress or setbacks in trade negotiations will impact when the Fed adjusts interest rates.
Besides gold, other precious metals showed small gains. Silver inched up by 0.1% to $32.31 per ounce. Platinum rose 0.2%, hitting $989.31, while palladium moved up 0.3% to $963.94.
Overall, as trade tensions grow and the dollar weakens, demand for gold grows. This trend may continue if market instability rises. Investors remain alert, watching every development in global trade and monetary policy.