Tariff Tensions and Fed Signals Shape the Markets
Gold prices edged slightly higher in Asian trading on Thursday, staying largely within recent ranges. Copper futures in the U.S. continued their upward trend after President Donald Trump reaffirmed his intention to impose tariffs on copper imports. Meanwhile, the broader U.S. dollar index showed mixed movement as uncertainty about Federal Reserve rate cuts persisted.
Gold received mild support from a weakening U.S. dollar, following Fed minutes that revealed most policymakers still back rate cuts this year. However, disagreement remains on timing, particularly due to concerns over the inflationary impact of Trump’s tariffs.
President Trump announced late Wednesday a 50% tariff on all U.S. copper imports effective August 1. This move could significantly tighten domestic copper supply, considering the U.S. imports at least half of its demand.
In the oil market, crude prices hovered near two-week highs, even as U.S. crude inventories surged by 7.07 million barrels—well above expectations. However, gasoline stocks fell by 2.65 million barrels, reflecting strong holiday travel demand.
Tensions in the Red Sea flared again after an attack sunk a cargo ship, killing at least four crew members. The Houthi-linked assault has raised shipping and supply concerns. Meanwhile, OPEC+ prepares to ramp up production in September, including the UAE’s planned quota increase.
Conclusion
Markets are being pulled in multiple directions—from Trump’s aggressive tariff plans to conflicting Fed signals and renewed geopolitical risks in energy shipping routes. Staying informed and agile is crucial in this volatile environment.
