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As 'dollar-negative' sentiments spread, gold gains gain momentum

Gold prices rose Thursday as a result of a weaker dollar and the possibility that U.S. rates will be cut later this year. Investors were also waiting for more information on President Donald Trump's proposed trade policy.

By 0916 GMT, spot gold had risen 0.5% to $3328.23 an ounce. U.S. Gold Futures rose 0.5% to $3336.90.

Nitesh Shah, WisdomTree commodities analyst, said that the passing of One Big Beautiful Bill and unsettling trade policies should all be considered 'dollar-negative' events. Gold should therefore be favored in such an environment.

Gold is now cheaper for holders of other currencies due to the U.S. Dollar Index easing by 0.2%.

Trump intensified his tariff campaign Wednesday, imposing a 50% tax on Brazilian goods and a 50% tax on imports of copper. Both taxes will take effect on August 1.

Trump has also sent tariff notices to 7 minor trading partners. These are in addition to the 14 that were issued earlier this week. They will also take effect August 1, unless an agreement is reached.

Global stocks rose on Thursday, despite the latest tariffs from U.S. president Donald Trump.

The market impact of tariffs appears to be decreasing with every new headline. "Tariff fatigue is upon us, and traders require a new catalyst in order to wake up volatility from the lull," Matt Simpson, senior analyst at City Index, said.

Minutes from the Fed's meeting on June 17-18 showed that "only a few" officials thought that rates could be cut this month. Most were worried about inflation linked to Trump's trade policies.

Gold that does not yield, which is often used as a hedge to inflation and political unrest, can benefit from low interest rates.

At its meeting in June, the Federal Open Market Committee unanimously decided to keep rates unchanged. The next policy meeting will be held on July 29-30.

Silver spot rose 0.7%, to $36.59 an ounce. Platinum gained 0.9%, to $1359.65. Palladium rose 1.2%, to $1117.93. (Reporting and editing by Harikrishnan Nair in Bengaluru, Brijesh Patel and Anmol Chaubey)

(source: Reuters)