Gold prices edged higher Friday, rebounding after sharp losses in the previous session and on course for a weekly gain on U.S. fiscal deficit worries and Washington’s impending tariff decision.
At 06:55 ET (10:55 GMT), Spot Gold rose 0.3% $3,337.50 an ounce, while Gold Futures for August gained 0.1% to $3,347.52/oz.
The yellow metal fell nearly 1% on Thursday after a strong U.S. jobs report reduced chances of a Federal Reserve rate cut this month, but it was still on track to rise 1.8% this week, after two consecutive weekly declines.
Trump to announce new tariff rates by Friday
President Trump said on Thursday that Washington will begin issuing formal letters to major economies outlining new U.S. export tariff rates as early as Friday.
He said the U.S. will forgo lengthy negotiations with over 170 countries and instead unilaterally impose flat tariff rates ranging between 20% and 30%.
So far, the U.S. has signed trade deals only with the U.K. and Vietnam, and a limited framework with China.
Expectations of increased global trade friction and uncertainty around tariff rates provided some support to gold.
Gold set for weekly rise
This week, bullion was also aided by concerns over the U.S. fiscal deficit as Congress cleared President Trump’s sweeping tax-cut bill on Thursday.
The bill that cuts taxes, boosts border security, and lowers social safety-net spending now moves to Trump’s desk, on the July 4 target he set to finish the legislation.
The nonpartisan Congressional Budget Office estimates the bill would add $3.4 trillion to the $36.2 trillion national debt.
Central banks add to gold reserves
Central banks added a net 20 tonnes of gold to global gold reserves in May, 66.7% higher than the previous month, but below the 12-month average of 27 tonnes, according to the World Gold Council.
Kazakhstan remained the leading buyer in May, buying 7 tonnes, taking its net purchases so far this year to more than 14 tonnes. This was followed by the National Bank of Poland and the Central Bank of Turkey with net purchases of 6 tonnes each, taking total net purchases to 67 tonnes and 15 tonnes, respectively, in the first five months of the year.
Metal markets subdued
The US Dollar Index dipped slightly Friday, but had posted strong gains in the previous session following the robust U.S. jobs report.
Platinum Futures rose 1% to $1,395.50/oz, while Silver Futures fell marginally to $37.075/oz.
Benchmark Copper Futures on the London Metal Exchange edged 0.9% lower to $9,865.00 a ton, while U.S. Copper Futures fell 1.8% to $5.0505 a pound.
