Gold continues to post losses, down 0.6%, as the US dollar strengthens amid escalating trade war concerns. The positive momentum for the dollar came after the US President announced new 25% tariffs on the European Union, Canada and Mexico, along with an additional 10% tariff on Chinese goods, bringing the total tariffs on Chinese imports to 20%. This has reduced the appeal of gold to international investors, putting the precious metal on track to record its first weekly loss in 2025.

On the economic front, US inflation data is reinforcing expectations that the Federal Reserve may take a more hawkish approach to monetary policy, as reflected in statements by its officials, including Patrick Harker, who indicated that rising inflation expectations may prompt the central bank to reconsider its stance.