Gold and Silver Flatline as Trump Threatens to Hike Trade Tariffs
Tuesday, 7/08/2025 14:20
GOLD and SILVER trimmed yesterday's rebound against a rising Dollar on Tuesday, trading flat for the week so far − and little changed across summer 2025 to date − as global stock markets also trod water amid US President Trump's latest slew of trade tariff announcements.
Rallying $50 per Troy ounce on Monday, the price of gold fell back to trade below $3330.
That marked a new all-time high when first reached 12 weeks ago on the way up to
April's gold-price record of $3500.
"Sentiment [in gold] is cautious as the [wider] markets are moving slowly towards risk-on," says a note from bullion-market specialist Rhona O'Connell at brokerage StoneX.
"But the jury is still out over tariffs," with the MSCI ACWI index of global stock markets trading flat overall on Tuesday after falling for the 3rd session of 5 so far in July.
Silver prices meantime fell back today to $36.60, a new 13-year high when reached this time last month.
Trump last night posted 15 letters on his TruthSocial platform, apparently dictated by the President and sent to the leaders of East Asian nations including Japan, plus South Africa, Kazakhstan and Serbia among others, confirming import tariffs of 25-30% starting on 1 August.
"[While] it is a Great Honor for me to send you this letter," says Trump, "these Tariffs may be modified, upward or downward, depending on our relationship with your Country."
The 1 August deadline is "firm but not 100% firm," Trump later told reporters.
Instead of pricing in a risk of higher US trade tariffs, "The market is pricing in and expecting a mix of bilateral trade agreements or extensions," says metals strategist Nicky Shiels at Swiss bullion refining and finance group MKS Pamp.
"[That] complacency is a risk for lower US equities and lower yields, and higher gold if tariffs are higher than expected."
The US Dollar today extended its rise from last week's 3-year lows against other rich-world currencies, rising back towards Monday's 8-session high on the DXY index.
That saw gold priced in other currencies hold onto more of yesterday's rebound, with the UK gold price in Pounds per ounce trading above £2450 and the Euro gold price also higher for the week so far at €2840.
Crude oil meantime flattened in US Dollar terms, trading below $70 per barrel of Brent as Trump's tariffs strategy threatened to hurt global trade while the Opec+ cartel of producer nations is now set to raise output.
After beating gold as
2025's best asset so far, copper prices also stabilized Tuesday, trading just above yesterday's 1-week lows on US futures contracts, after No.1 mining nation Chile reported a sharp rise in exports of the industrial metal.
Email us
