Gold Price Nears $3,340 as Global Trade Tensions Ignite Safe-Haven Demand

Gold Price Nears $3,340 as Global Trade Tensions Ignite Safe-Haven Demand

Published: July 11, 2025
Category: Commodities | Precious Metals | Geopolitics

XAU/USD Extends Winning Streak to a Third Day

Gold (XAU/USD) continues its bullish streak into Friday, rising to nearly $3,340 per ounce, as global trade tensions drive renewed interest in safe-haven assets. This marks the third consecutive day of gains for the yellow metal.

Trump’s Fresh Tariff Threats Fuel Market Fears

The rally in gold comes on the heels of new tariff threats from US President Donald Trump, who announced a 35% tariff on Canadian imports and hinted at similar or higher duties—15% to 20%—on EU countries that failed to meet a 90-day trade negotiation deadline. These aggressive trade policies have sent shockwaves through equity markets, dampening risk sentiment.

“We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%. We’ll work that out now,” Trump said in a Thursday interview with NBC News.

The announcement revived fears of a global trade war, prompting a shift into traditionally safe assets like gold.

Market Focus Turns to US Inflation Report

Looking ahead, investor attention is pivoting toward the US Consumer Price Index (CPI) report for June, due later today. Inflation data could influence the Federal Reserve’s monetary policy path and affect gold's next directional move.

If inflation cools more than expected, expectations of a Fed rate cut could strengthen, adding further upside pressure to gold prices.

Key Takeaways:

• Gold price rises to near $3,340, marking three straight days of gains
• Trump imposes 35% tariff on Canada and threatens more on the EU
• Safe-haven demand boosts precious metals as trade uncertainty deepens
• Markets now await US inflation data for June

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