U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
Japan Core Inflation Seen Rising in June, Strengthening BOJ Rate Hike Outlook 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Nikkei Plunges 5% as AI Stock Selloff Spreads Across Asia 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
AI Chip Stocks Face Valuation Pressure as Investors Shift Toward Big Tech and Software 
US Stock Futures Fall as Netflix Outlook, Chip Selloff and Iran Tensions Weigh on Markets 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Gold prices surged past $2,900 per ounce for the first time this week, driven by escalating trade tensions after President Donald Trump hinted at a 25% tariff on all US steel and aluminum imports.
Despite this record-breaking rally, Joe Maher, assistant economist at Capital Economics, warns that gold's momentum might not last. Precious metals have performed exceptionally well in 2025, even without support from typical drivers like the US dollar and real yields. The usual inverse correlation between gold prices and the 10-year US TIPS yield has weakened, with investors seeking gold as a hedge against potential trade wars.
Fears of gold being caught in trade disputes may have prompted US investors to stockpile the metal, particularly on the Comex exchange. Central banks have also increased gold purchases, potentially to reduce exposure to US sanctions, especially after $300 billion of Russian reserves were frozen following the Ukraine invasion.
Additionally, the large US fiscal deficit and Trump's remarks on national debt may be eroding reserve managers' confidence. Robust demand from China’s central bank and private investors seeking stable assets has further fueled gold’s rise.
While non-traditional drivers may continue to support gold prices in the short term, Capital Economics predicts that central bank diversification will be gradual. The high price may deter some investors, and expected rises in long-term US Treasury yields could push gold prices down to $2,750 by the end of 2025.
