Lagos — Gold prices climbed on Tuesday, recovering from Monday’s dip as investors continue to seek safety amid ongoing global trade uncertainty and ahead of a critical US inflation report. The asset could remain supported by the uncertainty generated by US tariffs.
US President Donald Trump reaffirmed his protectionist stance, threatening 30% tariffs on imports from the European Union and Mexico starting August 1. While Trump signaled openness to future negotiations, the risk of broader trade disruptions could leave investors cautious.
Markets also turned their focus to the U.S. CPI release, due later in the day, with expectations pointing to a further acceleration in both headline and core inflation. Traders are currently pricing in 50 basis points of rate cuts by year-end, but any upside surprise in inflation data could reduce easing expectations and weigh on gold.
On the geopolitical front, concerns remain elevated. Trump announced new military aid to Ukraine and announced a 50-day ultimatum on Russia to pursue peace. Meanwhile, the tensions in the Middle East intensified, potentially fueling demand for safe-haven assets.
*Van Ha Trinh, Financial Markets Strategist at Exness
