Gold Moves Marginally Higher Amid Ongoing Trade Uncertainty

(RTTNews) - The price of gold rose incrementally higher on Monday even as the US dollar regained its lost value and with investors shifting focus to trade deals.

Front Month Comex Gold for July delivery inched up 60 cents per troy ounce (or 0.02%) to $3332.20 today.

Front Month Comex Silver for July delivery lost 16.90 cents per troy ounce (or 0.46%) to $36.615 today.

Yesterday, US President Donald Trump stated that many countries trading with the US are on the verge of securing a deal and other countries out of deal-making shall be notified of new tariffs on July 9. These new tariffs will take effect from August 1.

Trump also posted in his social media platform, Truth Social, that his government would start delivering tariff letters from Monday noon.

Separately, Trump has also announced that the US will impose an additional 10% tariff to 10-member bloc, BRICS (Brazil, Russia, India, China, and South Africa) nations and countries aligning with BRICS as he considers their stance, "Anti-American".

It is unclear if the ongoing trade talks between US and India would be impeded by his new assertion. China has responded stating that the BRICS is not seeking any confrontation.

With the July 9 deadline just two days away, though countries are rushing to finalize deals with the US, overall trade uncertainty still remains higher.

Moreover, contrary to market expectations, last week's US jobs data revealed a positive trend, giving the US Fed enough reason not to rush with rate cut implementation anytime sooner than September.

Long-term concerns on the US economy remain as the sweeping tax and spending bill has successfully passed both houses and signed by Trump. The law is projected to pile up another $3.3 trillion to the current mammoth US debt.

On the geopolitical front, in the Middle East, the ceasefire between Israel and Iran that took hold on June 24, still continues without any adverse events.

Analysts are of the opinion that gold price is now consolidating as central banks of various countries have been buying bullion at increasing levels over the past few months.

The People's Bank of China (PBoC) alone has added 70,000 troy ounces of gold to its official reserves in June, marking the eighth consecutive monthly increase.