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Gold continued to trade sideways on Friday and could continue to see some volatility as safe-haven demand changes with the developments around US trade policy, central bank independence and international geopolitical risks.
Geopolitical tensions remain pronounced. The US is accelerating arms shipments to Ukraine amid intensified conflict with Russia. In the Middle East, instability persists, with renewed sectarian clashes in Syria and strikes in Gaza amplifying regional volatility.
President Trump’s recent announcement to notify over 150 countries of their tariff schedules reignited trade uncertainty.
The resulting ambiguity tempers optimism and sustains a bid for defensive assets like gold. In addition, concerns around Federal Reserve independence could also drive investors toward gold.
However, the yellow metal could remain under pressure as strong US macroeconomic data reduced expectations for imminent rate cuts. Recent figures reinforced the expectations of US economic resilience. Retail sales rebounded more than expected in June and initial jobless claims fell to their lowest level in three months. These indicators bolstered the view that the Federal Reserve could maintain its current policy stance for longer.
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