Gold holds ground amid increased US trade duties — Reuters

Gold prices remained within their previous trading range after US President Donald Trump announced increased tariffs on Japan, South Korea, and other countries. This information was provided by Reuters.

Currently, the price of an ounce of the metal stands at $3,331.

Earlier on Monday, the US president notified trading partners about increased trade levies effective August 1. This marks a new phase in the country’s foreign trade policy. Goods from Japan and South Korea are now subject to 25% tariffs.

According to KMC Trade analyst Tim Waterer, the current uncertainty is boosting demand for gold as a safe-haven asset. However, the strength of the US currency and high bond yields are limiting the metal's upside potential, the expert added.

Higher yields increase the opportunity costs for holders of non-yielding bullion. At the same time, dollar strength puts pressure on owners of other currencies when purchasing gold.