2025-07-11 Sing Pao's Column《真金白銀》(English translation) Gold Rises as Tariff Tensions Resurface

Gold Rises as Tariff Tensions Resurface

This week, investor attention turned to renewed trade tensions between the U.S. and its major trading partners. Former President Donald Trump issued fresh tariff warning letters to seven countries, sparking concerns over global trade stability. Combined with the Federal Reserve’s cautious stance on monetary policy, these developments helped reignite demand for safe-haven assets, pushing gold prices back up to USD 3,325 per ounce during Thursday’s (July 10) Asian session.

Despite the tariff threats, U.S. equities remained resilient. The three major stock indexes posted gains, suggesting that markets have grown desensitized to tariff news, especially as the U.S. economy has maintained steady growth over the past three months. However, the strength of the U.S. dollar remains a key headwind for gold. The Dollar Index continues to hover near its highest level in over two weeks, weighing on gold’s upside potential in the short term.

From a technical standpoint, gold has reclaimed and held above the key USD 3,300 level, with daily indicators showing short-term bullish momentum. A breakout above the 21-day Simple Moving Average (SMA) at USD 3,350 could open the door to higher targets, with resistance expected at the bottom of the previous consolidation range around USD 3,375–3,380. Conversely, if gold closes below USD 3,300 again, the 14-day Relative Strength Index (RSI) may fall below the neutral level to around 44, indicating a shift toward bearish momentum. In that case, prices could decline toward the monthly low at USD 3,248, with a deeper support level seen at the 50% Fibonacci retracement near USD 3,232.

Silver has held steady near USD 36.40 throughout the week, consolidating within a tight range near 13-year highs. Over the past month, prices have been moving sideways between USD 35.50 and USD 37.30, reflecting investor hesitation following the sharp rally in early June. Currently, silver trades above both the 20-day SMA and the midpoint of the Bollinger Bands, around USD 36.25 — a key level serving as a short-term pivot. A break below this may trigger a retreat toward the lower bound of the range at USD 35.70. On the upside, a sustained close above USD 37.30 would confirm a breakout, with the next potential targets at USD 38.00 and USD 38.45.

In the cryptocurrency market, Bitcoin has entered a consolidation phase, lacking fresh bullish catalysts. Although profit-taking pressure has eased, the absence of strong buying interest has prevented Bitcoin from reaching a new all-time high. This indicates that investors are waiting for a clear signal before making their next move.

On the regulatory front, Hong Kong’s Stablecoin Bill is set to take effect on August 1, introducing a licensing regime for stablecoin activities — a major milestone for the region’s crypto development. Meanwhile, Bitcoin Asia 2025 will be held in Hong Kong on August 28–29, with Eric Trump, son of Donald Trump, scheduled to attend. Regardless of short-term price fluctuations, the long-term outlook for digital assets remains promising, with cryptocurrencies continuing to cement their role in the future of global finance.

Disclaimer:

The content of this column is for informational purposes only and does not constitute investment advice or an offer to buy or sell any financial products. Investing involves risks. Readers should carefully evaluate their own circumstances and seek independent professional advice before making any investment decisions.