Mitsubishi UFJ Financial Group: Market Digestion of Latest Tariff Proposal Leads to Gold Price Increase

Analysts at Mitsubishi UFJ Financial Group said in a research report that under the combined game of weighing tariff risks and unclear prospects for loose monetary policy, precious metal prices have been rising. President Trump's comprehensive tariff proposal, including new taxes on imports from Canada, Brazil, and copper, increased market uncertainty before the August 1 effective date, boosting the safe-haven appeal of gold. However, at the same time, the Federal Reserve's conflicting signals on interest rate cuts have weakened the attractiveness of non-yielding gold. So far this year, due to geopolitical tensions, central bank purchases, and ongoing economic concerns, gold has risen nearly 27%.