Gold Prices Surge as US Dollar Slides Lower, Boosting Gold ETFs and Miners

Gold prices rise nearly 1% to $3,328.70 per ounce, driven by expectations of US interest rate cuts and renewed tariff threats by President Trump. The US dollar index slips 0.2%, making gold less expensive for foreign investors. The rise in gold prices boosts related securities such as SPDR Gold Trust (GLD), Kinross Gold Corp. (KGC), and Newmont Corp. (NEM).

Gold prices experienced a significant rise on Thursday, climbing nearly 1% to $3,328.70 per ounce. This upward trend was primarily driven by expectations of potential US interest rate cuts and renewed tariff threats from President Donald Trump. The US dollar index slipped by 0.2%, making gold more affordable for foreign investors and contributing to the price increase.

The latest Federal Reserve minutes, released on Wednesday, indicated a division among policymakers regarding the outlook for interest rates. A few officials suggested that interest rates could be cut as early as this month, while the majority preferred to wait until later in the year due to concerns about inflation linked to Trump's trade policies. This uncertainty in monetary policy contributed to the rise in gold prices, as investors sought a haven asset.

President Trump continued to escalate his global tariff war by announcing new tariffs and sending tariff letters to various countries. These actions have dampened hopes for successful trade talks and increased market volatility. Despite the tariff threats, the market appears to be experiencing "tariff fatigue," according to Matt Simpson, senior analyst at City Index, who noted that traders require a new catalyst to wake up volatility from its lull.

The US dollar index's decline and the retreat of benchmark 10-year US Treasury yields also played a role in the gold price increase. A lower yield reduces the opportunity cost for holding bullion, while a weaker dollar makes gold more affordable for holders of foreign currencies.

The rise in gold prices had a positive impact on related securities. SPDR Gold Trust (GLD), Kinross Gold Corp. (KGC), and Newmont Corp. (NEM) all experienced gains, reflecting investor confidence in the precious metal as a safe haven asset.

The Federal Reserve's next policy meeting is scheduled for July 29-30, and investors will be closely watching for any further clues on interest rate policy. The market's attention will also remain on the progress of trade talks and the potential impact of new tariffs on the global economy.

References:
[1] https://energynews.oedigital.com/mineral-resources/2025/07/09/gold-prices-rise-on-weaker-dollar-as-trade-war-intensifies
[2] https://www.moomoo.com/news/post/43162971/record-tr4cking-news-nvidia-apple-mobileye-freeport-intel-aes-verona-pharma-wpp-biggest
[3] https://finance.yahoo.com/news/gold-swings-traders-wait-fed-151627006.html
[4] https://economictimes.indiatimes.com/markets/commodities/news/gold-rises-as-fresh-trump-tariff-threats-dampen-trade-talk-hopes/articleshow/122331174.cms