TLDR
- Gold prices rose 0.5% to around $3,340 an ounce as Trump announced tariff letters would be sent starting July 4
- Trump said tariffs ranging from 10-70% will be imposed on trading partners beginning August 1
- About 10-12 countries will receive initial letters, with more coming over the next few days
- UK and Vietnam have already secured trade deals, but EU and other nations remain without agreements
- Gold has gained over 25% this year, driven by trade tensions and safe-haven demand
Gold prices climbed on Friday as President Donald Trump announced his administration would begin sending tariff notification letters to trading partners. The precious metal rose 0.5% to around $3,340 an ounce as investors reacted to the news.
Trump told reporters that the letters would detail new levy rates for several nations, with tariffs starting August 1. The rates will range from 10-20% on the lower end to 60-70% for some countries, according to the president’s comments made late Thursday.
Trump he is going to send a letter out to every country telling them what tariff they will be paying
— Defiant L’s (@DefiantLs) July 3, 2025
The administration plans to send out approximately 10-12 letters on Friday. Additional letters will follow over the next few days, Trump said.
The tariff announcements come as a 90-day pause in trade penalties is set to expire on July 9. Countries had until this deadline to reach new trade agreements with the United States to avoid higher tariff rates.
So far, only the UK and Vietnam have successfully negotiated deals with the Trump administration. The European Union and other major trading partners have yet to secure agreements.
Trade War Concerns Drive Safe-Haven Demand
Investors are worried that escalating trade tensions could harm global economic growth. This concern has boosted demand for gold as a safe-haven asset during uncertain times.
The precious metal has performed well this year, gaining more than 25% in value. Gold is currently trading about $160 below its record high set in April.
Central bank purchases have also supported gold prices throughout the year. Global central banks have maintained strong buying patterns for the precious metal.
The Trump administration has also agreed to a trade truce with China. This deal saw the world’s two largest economies reduce some of their existing tariffs on each other’s goods.
Fiscal Package Adds to Gold Appeal
The House of Representatives passed Trump’s fiscal package on Thursday. The sweeping legislation is expected to increase the US deficit by $3.4 trillion over the next decade, according to the Congressional Budget Office.
This massive spending plan could further boost demand for gold as investors seek protection against potential inflation and debt concerns. The Dollar Index slipped 0.2% on Friday, putting it on track for a weekly loss of 0.5%.
Other precious metals showed mixed performance. Silver remained steady while palladium and platinum posted gains.
Gold-linked exchange-traded funds have benefited from the increased interest in precious metals. The SPDR Gold Shares has gained 27% year-to-date, while the VanEck Gold Miners ETF has surged 53%.
Federal Reserve interest rate policy remains another factor for gold investors to watch. Strong US jobs data on Thursday reduced expectations for rate cuts at the Fed’s July meeting.
Gold reached $3,341.48 an ounce during Friday trading in Singapore.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
