Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
Gold prices remained steady on Wednesday and are on track for a monthly gain, buoyed by increasing optimism about potential US interest rate cuts. Traders are now focusing on the Federal Reserve's policy decision due later in the day.
Key Highlights:
Gold Prices: Spot gold held firm at US$2,407.85 per ounce as of 0200 GMT, showing a gain of over 3% for the month. US gold futures slightly rose by 0.1% to US$2,405.60.
Federal Reserve: The Fed is expected to keep rates steady at the end of its two-day meeting. However, market participants anticipate signals towards a rate cut in September.
- Kyle Rodda, a financial market analyst at Capital.com, said, "The market wants to hear a confirmation that a September cut is on the cards and it will be the beginning of a policy easing cycle. Gold will rally if the Fed language indicates that multiple cuts are coming."
US Rate Futures Market: Fully priced in a 25-basis-point cut for September. Lower interest rates generally benefit non-yielding bullion.
Upcoming Economic Data: Traders are also eyeing the ADP employment report due later today and the US payrolls report on Friday. Recently, data showed US job openings fell by 46,000 to 8.184 million by the end of June.
Geopolitical Tensions:
US Strike in Iraq: The United States conducted a strike in Iraq in self-defense amid rising regional tensions following an Israeli airstrike in Beirut that reportedly killed Hezbollah's top commander.
Rodda added that significant escalation in geopolitical tensions, especially on Israel's northern border, could boost the safe-haven demand for gold.
Other Metals:
- Spot Silver: Increased by 0.2% to US$28.44 per ounce.
- Platinum: Gained 0.7% to US$966.13.
- Palladium: Rose by 1% to US$898.13. Both platinum and palladium are set for monthly declines.
The market's attention remains sharply focused on the Federal Reserve's signals regarding future interest rate cuts, which could significantly influence the trajectory of gold prices moving forward.
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