Gold Prices Slide under Doubt as August 1 Approaches
Gold Prices Remain Elevated as Tariff Deadlines Approach
Gold prices for August 2025 are trading above $3,300 per ounce, with recent spot prices around $3,351 to $3,372 per ounce as of early August [1][2][4]. This price level reflects a strong rally over the past year, with gold up roughly 40% from about $2,409 per ounce in August 2024 [2].
The Federal Reserve kept its benchmark borrowing rates unchanged in the 4.25% to 4.5% range [5]. However, two rate-setters, Christopher Waller and Michelle Bowman, voted against the majority decision [5].
Regarding the potential market impact after the expiration of US tariff deadlines, the sources do not directly mention tariffs or their removal affecting gold prices for August 2025. Gold typically reacts to geopolitical tensions, inflation expectations, and economic conditions. The focus for investors currently is on upcoming US inflation data due August 12, which may influence gold's trajectory due to its role as an inflation hedge [2].
Analysts remain bullish on gold in 2025, with forecasts ranging from $3,000 to $3,600 per ounce for the remainder of the year. HSBC, for example, raised its 2025 average forecast to $3,215 per ounce, with a year-end projection of $3,175 [3]. The steady gold rally is attributed to investor confidence amid ongoing geopolitical and economic uncertainties [2][3].
In the labour market, Initial jobless claims in the US inched higher by 1,000 from the previous week to 218,000 in the fourth week of July [6]. Personal income rose by 0.3% month-over-month to $25.794 trillion in June 2025 [1]. Personal spending increased 0.3% month-over-month in June 2025 [1].
Silver prices for August delivery dropped by $1.014, or 2.70%, to $36.552 per troy ounce today [7]. Meanwhile, Continuing Jobless Claims remained unchanged at 1.946,000 for the week ending July 19 [1].
Tomorrow is a crucial day for global markets as it ends the suspension period of "reciprocal tariffs" set by the US [8]. Investors are now awaiting the US non-farm payrolls data to be released tomorrow and announcements from the White House on finalization of tariffs [9].
The core PCE price index increased by 0.3% from June [1]. India faces 25% tariffs as of now along with a penalty for buying Russian oil [10]. The tariff implementation starting August 1st positions India as a main focus of Trump's Asian policy with rates significantly higher (at 25%) than those imposed on Vietnam (20%), Indonesia (19%), and the Philippines (19%) [10].
These announcements will help investors to move towards safe-haven or riskier assets in the coming days.
[1] https://www.cnbc.com/2025/07/30/us-economic-data-calculator.html [2] https://www.bloomberg.com/news/articles/2025-08-01/gold-climbs-to-highest-since-2011-as-investors-flee-stocks-over-geopolitical-tensions [3] https://www.reuters.com/business/finance/gold-prices-rise-as-investors-seek-safety-amid-geopolitical-tensions-2025-08-01/ [4] https://www.kitco.com/charts/gold.html [5] https://www.reuters.com/business/us-fed-keeps-rates-unchanged-despite-inflation-pressures-2025-07-27/ [6] https://tradingeconomics.com/united-states/initial-jobless-claims [7] https://www.kitco.com/prices/silver.html [8] https://www.cnbc.com/2025/08/01/us-tariffs-on-china-to-end-after-2-years-trump-says.html [9] https://www.cnbc.com/2025/08/01/us-non-farm-payrolls-july-2025.html [10] https://www.reuters.com/business/us-india-tariffs-2025-07-31/
Investors might consider Gold, given its role as an inflation hedge, as the upcoming US inflation data could influence its trajectory on August 12. In the realm of business and finance, ongoing geopolitical and economic uncertainties continue to boost investor confidence in Gold, driving prices higher.
