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Gold Shines on Trade Fears, Yen Weakens as Tariff Threats Loom | 7th August 2025

Gold Surges | Yen Drops Markets are seeing heightened volatility as safe-haven demand surges amid renewed trade tensions. Gold prices rally as global uncertainties mount, while the Japanese Yen faces pressure following reports of additional US tariffs. Meanwhile, the Australian Dollar pares early gains after mixed Chinese trade data, and both GBP/USD and EUR/USD remain steady ahead of key central bank and economic releases. With investors eyeing upcoming policy decisions and economic indicators, caution dominates the trading landscape. Gold (XAU/USD) Forecast Current Price and Context Gold is trading near $3,380, buoyed by heightened trade concerns and fresh tariff threats. Safe-haven flows are returning amid renewed geopolitical tensions, while dovish rate-cut expectations for September enhance gold’s appeal. However, a modest rebound in the US Dollar is tempering further upside. Key Drivers Geopolitical Risks: Escalated US tariff threats—including levies on Indian and Japanese imports—boost safe-haven demand. US Economic Data: Weak job figures stoke rate-cut speculation, supporting gold fundamentals. FOMC Outcome: The market increasingly expects a Fed rate cut by September, adding pressure on the Dollar. Trade Policy: Renewed concern over global trade tension continues to drive inflows into gold. Monetary Policy: Anticipated global monetary easing further enhances non-yielding asset attractiveness. Technical Outlook Trend: Bullish momentum reinforced after recent pullback. Resistance: $3,400 psychological barrier, then $3,420–$3,435 supply zone. Support: Immediate support seen at $3,350; a deeper floor near $3,330. Forecast: A sustained break past $3,400 could pave the way for further gains, while a pullback remains limited beyond $3,350. Sentiment and Catalysts Market Sentiment: Cautious optimism for gold as investors rotate back into safe-haven assets. Catalysts: Demand could intensify if additional US tariff steps materialize or if the Fed confirms expectations of approaching rate cuts. AUD/USD Forecast Current Price and Context The AUD/USD pair is trading near 0.6500 after trimming earlier gains, as Australia reports a stronger-than-expected trade surplus for June. Exports surged 6.0% MoM and imports dropped 3.1%, widening the surplus to AUD 5.365 billion—above forecasts. Meanwhile, renewed global growth optimism and easing trade tensions continue to offer mild support to the risk-sensitive currency. Key Drivers Geopolitical Risks: Trade jitters are easing, supporting clean-dominant commodity-linked currencies like AUD. US Economic Data: A subdued US Dollar amid mixed growth data, including initial jobless claims and Fed-related news, provides breathing room for AUD FOMC Outcome: Dollar softness is partly driven by continued expectations of a September rate cut. Trade Policy: A widening Australian trade surplus reflects resilient demand from China—a positive for AUD Monetary Policy: The Reserve Bank of Australia faces pressure to consider future easing, cushioning AUD action. Technical Outlook Trend: Bullish recovery stalled, now consolidating near 0.6500. Resistance: 0.6525 and 0.6550—immediate hurdles on the upside. Support: 0.6485 and 0.6450 guard the downside. Forecast: AUD/USD may move sideways between 0.6485–0.6525 unless new trade or monetary policy developments emerge. Sentiment and Catalysts Market Sentiment: Neutral-to-bullish as Australia’s trade data contrasts with underlying pressure from expectations of RBA rate cuts. Catalysts: The next directional moves will depend on upcoming RBA policy comments and fresh data out of China or the US. GBP/USD Forecast Current Price and Context The GBP/USD pair is trading near 1.3350, showing limited movement as market participants await the Bank of England’s (BoE) policy decision. The pair had been buoyed by a modest rebound, but recent inflation and labor data have chilled bullish sentiment. Traders now expect a quarter-point rate cut by the BoE, prompting caution across Sterling trades. Key Drivers Geopolitical Risks: No fresh shocks—markets focused on UK monetary policy next. US Economic Data: Soft U.S. labor data has weakened the Dollar, offering slight support to GBP. FOMC Outcome: Expectation of slowed Fed tightening keeps GBP moves restrained. Trade Policy: Trade sentiments remain stable, offering neither support nor pressure on GBP. Monetary Policy: Strong odds of a 25 bps cut from the BoE this week weigh on Pound strength. Technical Outlook Trend: Sideways to mildly bearish Resistance: 1.3380 followed by 1.3420 Support: 1.3300 and a deeper floor at 1.3250 Forecast: GBP/USD is likely to consolidate in the 1.3300–1.3380 range until the BoE statement provides direction. Sentiment and Catalysts Market Sentiment: Cautiously neutral as traders await clarity from monetary policy signals. Catalysts: The upcoming BoE rate decision and its accompanying statement are expected to steer near-term direction for GBP/USD. EUR/USD Forecast Current Price and Context EUR/USD is trading around 1.1665, supported in early Thursday trading by a weaker US Dollar and improving Eurozone retail sales. Yet the pair remains cautious ahead of the release of German industrial production data, which could set the tone for near-term directional moves. Key Drivers Geopolitical Risks: No significant macro shocks; focus remains on economic indicators US Economic Data: Softer employment figures have undercut the Dollar, bolstering the Euro. FOMC Outcome: Markets remain positioned for eventual Fed easing, weakening safe-haven demand for USD. Trade Policy: Ongoing tariff pressures, especially from the US, underpin cautious Eurozone sentiment. Monetary Policy: ECB remains on hold but inflation concerns and slowing German production may pressure future rate outlook. Technical Outlook Trend: Mild bullish tone, consolidating above the 1.1650 level. Resistance: 1.1680 — next hurdle to confirm momentum. Support: 1.1630 and 1.1600 — critical levels to preserve gains. Forecast: EUR/USD may maintain gains near 1.1680 if German data disappoints—but a strong print could spark a rebound toward 1.1700. Sentiment and Catalysts Market Sentiment: Neutral-to-bullish as traders await clearer direction amid mixed economic data. Catalysts: German June industrial production—if it falls short of expectations, it may limit EUR/USD upside movement. USD/JPY Forecast Current Price and Context USD/JPY is trading near 147.35, edging lower as reports surface of potential additional 15% U.S. tariffs on all Japanese imports, with no exceptions for goods already taxed above 15%. The Japanese Yen is under renewed pressure even as risk sentiment softens and the US Dollar shows cautious strength. Key Drivers Geopolitical Risks: Escalating U.S. tariff threats are undermining confidence in Japan’s export sector. US Economic Data: A resilient U.S. economy continues to support the Greenback. FOMC Outcome: A Federal Reserve perceived as data-dependent keeps USD buoyant. Trade Policy: Reports of imposition without exemption increase uncertainty around Japan’s trade outlook. Monetary Policy: The Bank of Japan remains on hold, reinforcing policy divergence and limiting JPY strength. Technical Outlook Trend: Neutral-to-bearish in the short term Resistance: 147.75 followed by 148.20 Support: 147.00 and 146.50 Forecast: Weakness may persist if tariff reports gain traction; however, a reversal or clarification could result in a pullback toward support. Sentiment and Catalysts Market Sentiment: Cautious; uncertainties around trade policy are favoring USD strength. Catalysts: The Yen’s direction now hinges on confirmation or retraction of tariff proposals and any follow-up statements from trade officials that may clarify the policy stance. Wrap-up Today’s session reflects a market bracing for impact—gold gains on risk aversion, while the Yen weakens under tariff pressure. The Australian Dollar showed resilience but lacked follow-through, and major currency pairs like GBP/USD and EUR/USD hold their ground in anticipation of high-impact releases. As the week unfolds, traders will be closely watching the BoE decision, German industrial data, and ongoing trade developments for further direction. Ready to trade global markets with confidence? Join Moneta Markets today and unlock 1000+ instruments, ultra-fast execution, ECN spreads from 0.0 pips, and more! Start now with Moneta Markets!

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Publication date:

2025-08-07 08:30:25 (GMT)

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