Gold prices update as of August 07, 2025
Gold prices moved positively due to some concerns regarding the tariff implementation, the central bank’s current stances, and the Russia-Ukraine conflict.
- Tariffs on Semiconductors and Chips: Despite the market anticipating on having an announcement next week, Trump just declared that a 100% tariff plans will fall on both semiconductors and chips, while they could possibly be exempt for those who made a commitment in the US. That also likely refers to the “huge investment” that multiple major companies have made over the last few weeks. These companies include:
- Apple ($100 billion investment in U.S. manufacturing)
- Nvidia (up to $500 billion worth of AI infrastructure in the U.S)
- TSMC (could invest over $300 billion) and more.
***But do note that, while some companies are likely to dodge these bullets, not all will. Therefore, those who are not in the list are likely to be affected negatively. Focus on the stock market tonight and how the commodities market responds.
- Russian Oil: Trump announced a new tariff on India with 25% on top of the existing one → a total of 50%, while also opting to impose it on China as well for purchasing the Russian oil. China has not responded yet, but if they both reciprocate, then tension in trade will rise, especially between the US and China.
→ Bad for the stock market if things escalate, but will appreciate in gold prices.
***However, the latest development also mentioned how Russia is now inclined to a ceasefire, albeit not much should be taken into account.
- The Federal Reserve (FED)’s current stance: Several FED members are more likely to support an interest rate cut this year while addressing some worries on labor market conditions, particularly referring to the recent revision.
- The FED’s Kashkari cited that, “need to respond to slow economic growth with two rate cuts.”
- The FED’s Daly, “likely to adjust in coming months,” and “tariffs are unlikely to boost inflation.”
- The FED’s Cook, “These revisions are somewhat typical of turning points.”
***Showing more support for a rate cut would favor gold prices, especially when Mr. President will likely announce the FED appointment in the next few days.
