**Gold Prices Rise Due to Trade Policy Changes** Gold prices increased almost 1% as the market reacted to new US trade policies. The current XAU/USD price is $3,354, recovering from a low of $3,322. This rise followed President Trump’s decision to impose 35% tariffs on Canadian goods and potential new tariffs on other trading partners. Currently, the US economic calendar is light, but Federal Reserve President Austan Goolsbee emphasizes job growth and price stability instead of rate cuts. Upcoming US data includes the June Consumer Price Index (CPI), Retail Sales, and Jobless Claims, as well as talks from Federal Reserve officials before the blackout period starting July 19. Despite ongoing trade tensions, the US Dollar remains strong, with expected weekly gains. Additionally, Trump announced 50% tariffs on Copper and Brazilian imports, along with 10% tariffs on countries that support BRICS policies. The June CPI is forecasted to rise by 2.6% annually and 0.3% monthly, consistent with Core CPI expectations. Retail Sales are expected to hold steady at 0%, while Jobless Claims may slightly decrease. Gold prices continue their upward trend, surpassing $3,350, with the potential to challenge $3,400 and beyond. Gold has historically been a safe haven and a store of value, especially during uncertain times and adverse economic conditions. Its negative correlation with the US Dollar and interest rates makes it a vital asset in times of geopolitical or economic instability. **Economic Indicators and Gold Market Sentiment** Gold prices recently jumped by almost 1% due to trade tensions following high US tariffs. The current price is about $3,354 per ounce, up from a session low of $3,322. This increase reflects concern over the effects of President Trump’s 35% tariffs on Canadian exports and potential duties on other trading partners. The market is cautious as these protectionist actions could disrupt established trade flows. Additionally, new tariffs on Brazilian exports and copper imports introduce complex factors affecting the market. The additional 10% tariffs on countries aligned with BRICS prompt a reevaluation of exposure in commodity-sensitive and import-reliant sectors. Gold prices tend to respond ahead of broader economic indicators, as buyers seek safety amid tariff escalations. Looking forward, attention will be on upcoming US economic reports, although there is limited data available. Market participants are interested in how Goolsbee frames the Federal Reserve’s priorities. He highlights the importance of the job market and controlling inflation rather than suggesting rate changes. Those involved in trading rate-sensitive assets may need to shift their focus elsewhere for the time being. The upcoming reports on CPI, Retail Sales, and Jobless Claims are expected to influence short-term market trends more than long-term sentiment. The CPI is expected to show a steady 2.6% annual increase and a 0.3% monthly rise, indicating persistent inflationary pressure. If retail sales remain flat, it would suggest that consumer confidence is cautious, possibly due to price-sensitive households reducing discretionary spending. A slight decrease in Jobless Claims may not significantly change the overall economic picture, but it could affect short-term demand for the dollar. The US dollar remains strong, attracting bids despite trade uncertainties. This reflects both solid US economic performance and confidence in the dollar’s stability amid industrial challenges. The dollar’s strength is currently a counterbalance to dollar-denominated assets like gold. Nevertheless, gold is likely to continue its upward trend, showing that its price movement isn’t just based on foreign exchange trends. If gold breaks through $3,400 decisively—especially amid risk-off sentiment and soft economic data—there could be sustained buying interest beyond current levels. Its historical role in preserving purchasing power is particularly valuable during politically volatile times or periods of inflation. Gold is traditionally seen as a defensive asset because of its negative correlation with rising yields and a stronger currency, although this relationship appears to be weakening recently, possibly indicating deeper investor concerns. **Factors Influencing Gold and Currency Trends** For those engaged in directional trades or volatility strategies, the combination of trade disruptions, persistent inflation, and tight monetary signals creates valuable short-term opportunities. Gold’s strength suggests that investors are hedging not only against inflation but also against uncertainties in international cooperation and the impact of tariffs. With the Federal Reserve entering a communication blackout on July 19, the next few sessions could see significant market reactions to any unexpected news. Create your live VT Markets account and start trading now.

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