Gold is trading higher by more than 1% at the start of the US session today, Monday, July 21, the opening session of the week, affected by the decline in the US dollar amid monitoring of developments in tariffs as the deadline approaches and the absence of economic figures during today’s session. The yellow metal is trading up by about 1.06% at $3,386 per ounce, while silver is trading at $38.57 per ounce, up 1.04%. With the August 1 deadline for the tariffs announced by the United States approaching, and trade agreements not yet reached with more than 150 trading partners, most notably the European Union, Japan, Canada, and Mexico, markets are closely monitoring this issue. The Wall Street Journal reported this morning that EU member states are seeking to take new and strict measures to respond to American companies in case a trade agreement is not reached before the deadline, and are developing a retaliatory plan. This has contributed to a decline in risk appetite in the markets and a rise in safe-haven currencies and assets, most notably gold. In a related development, the US Treasury Secretary stated today regarding the extension of the deadline that Trump will decide, and that there will be no rush to conclude deals. He added that Trump is more concerned with the quality of the deals than simply concluding them as the deadline approaches. Bessent emphasized the need for a comprehensive review of the Federal Reserve’s performance, supporting the idea of accelerating interest rate cuts as inflation moderates.
The US dollar index fell 0.40% to trade at 97.80, affected by the ongoing conflict between the White House and the US Federal Reserve. Just days before the US Federal Reserve’s July 30 meeting, expectations remain for interest rates to remain unchanged, with two interest rate cuts expected in September and December so far, an additional pressure factor on the US dollar.
Platinum, meanwhile, is trading at $1,455, up about 2.36%, while palladium is up about 1.95%, trading at $1,274.