Gold Nears $3,340 as Trade Tensions Boost Safe-Haven Demand

Gold Nears $3,340 as Trade Tensions Boost Safe-Haven Demand

Published: July 11, 2025
Category: Metals | Gold | XAU/USD

Gold Extends Rally Amid Growing Trade Concerns

Gold prices (XAU/USD) continued to rally on Friday, climbing above $3,340 as mounting trade tensions and safe-haven demand took center stage despite rising US Treasury yields.

Trump’s Tariff Announcements Spark Market Volatility

US President Donald Trump announced a sweeping 35% tariff on Canadian imports, effective August 1, outside of the US-Mexico-Canada Agreement (USMCA). This move rattled markets given the strong trade ties, with the US accounting for 76% of Canadian exports in 2024.

Furthermore, Trump warned of potential blanket tariffs of 15% to 20% on other countries, raising fears of escalating global trade friction.

Gold Benefits from Tariff Risk and Safe-Haven Appeal

The heightened uncertainty has pushed investors toward safe-haven assets like Gold, boosting its price as a hedge against tariff risks and geopolitical instability.

Key Market Factors to Watch:

• Upcoming US inflation data
• Fed monetary policy stance
• Trade negotiations updates
• USD strength and Treasury yields

Analysts emphasize that Gold’s safe-haven status remains robust amid tariff uncertainties and geopolitical risk.

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