Gold prices held firm in early Tuesday trading, maintaining gains driven by rising market expectations of a Federal Reserve interest rate cut in September. With the latest U.S. jobs report signaling economic strain and global trade tensions escalating, investors are increasingly turning to gold as a safe haven.
As of 01:00 ET (05:00 GMT), Spot Gold traded at $3,372.25 per ounce, unchanged from the previous session. December Gold Futures hovered at $3,425.02/oz, reflecting investor caution as macroeconomic concerns deepen.
The Federal Reserve’s next move has taken center stage. The CME FedWatch tool now shows a 92% probability of a rate cut next month, following weaker-than-expected U.S. nonfarm payrolls. Only 73,000 jobs were added in July, far below analyst expectations, while May and June numbers were revised downward. The unemployment rate also edged up to 4.2%, suggesting a cooling labor market.
Lower interest rates tend to support gold, as they reduce the opportunity cost of holding non-yielding assets like bullion. With inflation concerns rising alongside geopolitical uncertainty, gold’s appeal has strengthened considerably.
Tariff Uncertainty Sparks Safe-Haven Buying
In addition to rate cut bets, renewed trade tensions have contributed to gold’s resilience. U.S. Trade Representative Jamieson Greer confirmed that existing tariffs on imports from nearly 70 countries—introduced during the Trump administration—are likely to stay in effect.
Markets were further rattled by new threats of tariffs on Indian oil imports from Russia, fueling inflatio0nary fears and adding to investor anxiety. These developments have bolstered demand for assets that historically preserve value in turbulent times.
Key Takeaways:
- U.S. labor data shows weakest job growth since late 2022
- Gold benefits as inflation and rate cut expectations grow
- Tariff risks drive safe-haven flows into precious metals
Mixed Performance in Broader Metal Markets
While gold prices held steady, other metals saw mixed performance on Tuesday. Platinum Futures dipped 0.5% to $1,335.65/oz, reacting to broader market uncertainty. Silver Futures edged up 0.2% to $37.415/oz, mirroring gold’s resilience.
Copper prices showed relative stability:
- London Metal Exchange Copper Futures rose 0.3% to $9,720.65/ton
- U.S. Copper Futures remained flat at $4.454/lb
However, last week, U.S. copper prices plunged nearly 20% after President Trump excluded refined copper from a planned 50% import tariff, a move that sharply reversed bullish sentiment in the industrial metals space.