Bas Kooijman is the CEO and Asset Manager of DHF Capital S.A
Gold prices climbed to a multi-week high on Thursday. The rally was fueled by renewed safe-haven demand amid escalating trade tensions and growing expectations of a more dovish US monetary policy.
The trade frictions intensified after President Trump announced a 100% tariff on imported semiconductors, although he exempted companies that manufacture within the United States. He also confirmed that an additional 25% tariff will be applied to Indian imports. These measures coincide with a broader set of tariff hikes that took effect Thursday on goods from dozens of trading partners.
Meanwhile, disappointing US economic data and signs of a cooling labor market have reinforced expectations for a Federal Reserve rate cut in September. Markets currently expect three rate cuts by the end of the year which could support the metal and help the market reach new highs.
Attention could turn to new economic data releases. If they confirm a slowdown in the job market, jobless claims could further support the expectations of a dovish monetary policy and a stronger gold.