The escalation in protectionist measures drove investors toward safe-haven assets, with gold emerging as the top beneficiary.

Spot gold climbed 0.6% to $3,294.56 per ounce by late afternoon trading, having earlier gained over 1%. U.S. gold futures settled marginally lower at $3,348.60 per ounce, reflecting market volatility in the hours leading up to the tariff deadline.

The upward movement in gold came amid a wave of new trade announcements from the White House, including fresh tariffs on goods from Brazil and South Korea. At the same time, the U.S. extended its trade agreement with Mexico by 90 days to allow further negotiations.

The economic backdrop remains uncertain. U.S. inflation rose 0.3% in June, reflecting higher import costs linked to existing tariffs. The Federal Reserve held interest rates steady in the 4.25%–4.50% range during its latest policy meeting, and recent comments from the central bank dampened expectations of a near-term rate cut.

Gold typically gains strength in low-interest rate environments, as it does not offer yield. With borrowing costs holding firm and trade tensions intensifying, gold remained resilient while other precious metals saw sharp declines.

Silver fell 1.4% to $36.61 per ounce, hitting its lowest level in over three weeks. Platinum dropped 2.1% to $1,285.20, its weakest since late June, while palladium slipped nearly 2% to $1,181.49, reaching a two-week low.

Investor focus now shifts to the upcoming U.S. non-farm payroll data expected today, which could influence the Federal Reserve’s next policy steps and further impact precious metal markets.