Gold prices held relatively stable as markets brushed off renewed trade uncertainty following US President Donald Trump’s latest announcements, including a proposed 100 percent tariff on semiconductor imports.
The precious metal hovered near $3,370 an ounce after slipping 0.3 percent in the previous session. Trump’s remarks, aimed at encouraging chip manufacturers to bring production back to the US, did little to shake bullion’s recent momentum.
Tensions with major trading partners also escalated. The US has raised tariffs on Indian imports to 50 percent in response to India’s continued energy trade with Russia. According to a Kyodo report, Japan may also face increased tariffs on certain goods, despite earlier agreements.
Investors are also watching for Trump’s upcoming nomination of a new temporary Federal Reserve governor. The candidate is expected to support a more dovish monetary stance, which could lead to lower interest rates—a favorable development for gold, which offers no yield.
Gold’s recent upward trend has been supported by growing anticipation of rate cuts, strong demand from central banks, and a global push to reduce reliance on dollar-based assets. Although most of this year’s nearly 30 percent gain occurred in the first four months, continued geopolitical and trade pressures have sustained market interest.
As of 8:42 a.m. in Singapore, gold was up 0.1 percent at $3,373.45 an ounce. The Bloomberg Dollar Spot Index remained flat, while silver, platinum, and palladium all posted gains.
