Gold prices rose on Thursday as the dollar gave up ground against most major rivals and amid a change in the outlook of Fed interest rates following US data.

US President Trump said he’s willing to extend the final July 8 deadline to carry on trade talks, but warned that the US will send messages in the next few weeks to tens of countries to set trade terms.

Earlier US data showed producer prices rose 2.6% y/y in May, beating estimates of 2.5%.

US unemployment claims came at 248 thousand in the week ending June 7, same as the previous week, and up from estimates of 246 thousand.

Following the data, Trump renewed his attacks on Fed Chair Jerome Powell and called him a fool, but said once more he won’t fire him.

Otherwise, the dollar index fell 0.7% as of 20:14 GMT to 97.9, with a session-high at 98.5, and a three-year low at 97.6.

Gold spot prices rose 1.9% as of 20:18 GMT to $3407.4 an ounce. 

Most US stock indices stabilized on Thursday as traders assess latest data and new trade threats by Trump.

US President Trump said he’s willing to extend the final July 8 deadline to carry on trade talks, but warned that the US will send messages in the next few weeks to tens of countries to set trade terms.

Earlier US data showed producer prices rose 2.6% y/y in May, beating estimates of 2.5%.

US unemployment claims came at 248 thousand in the week ending June 7, same as the previous week, and up from estimates of 246 thousand.

On trading, Dow Jones fell 0.1%, or 37 points to 42,829 points, while S&P 500 rose 0.1%, or 6029 points, as NASDAQ climbed 0.1%, or 15 points to 19,631 points.

Copper prices rose mildly on Thursday as the dollar weakened, but concerns about demand and trade remained an obstacle. 

Copper three-month futures rose 0.5% at the London Exchange to $9694 a ton as of 14:00 GMT after hitting November 2023 at $8105. 

The dollar index fell to three-year lows after US inflation data, making the greenback-denominated metals cheaper to holders of other currencies. 

US President Trump said he’s willing to extend the final July 8 deadline to carry on trade talks, but warned that the US will send messages in the next few weeks to tens of countries to set trade terms. 

UBS noted that from the demand perspective, manufacturing PMIs from China, the US, and Europe remain in a contraction zone, with ongoing impact from tariffs, which would weaken demand on copper.

Last February, the US launched an investigation into copper imports and opened the way for a potential tariff similar to duties on steel and aluminum.

From the supply side, operations into a major copper mine in the Congo Democratic Republic resumed after an earthquake caused disruption.

Aluminum and tin prices were little changed at  the London Metals Exchange at $2516 and $32,600 a ton respectively, while zinc shed 0.6% to $2638, as nickel lost 0.2% to $15,150, while lead rose 0.5% to $1996.

Copper futures due in July rose 0.1% in American trade as of 15:14 GMT to $4.81 a pound.

Bitcoin dropped on Thursday below $108,000 amid mounting tensions in the Middle East, but corporations continued to build up their bitcoin holdings.

Risk Appetite Suffers

Bitcoin dipped on Wednesday and closed below $109,000 and extended the losses on Thursday, after reports that Israel is preparing for a military operation against Iran.

Such geopolitical tensions pushed investors toward safe havens, in turn underpinning bitcoin, which has become a favored alternative investment in recent weeks. 

Russia escalated its attacks on Ukrainian targets, describing it as retaliation against recent Ukrainian attacks, with Russian drones targeting major Ukrainian cities in intensive strikes. 

Trump said he is sending messages to the US trade partners, specifying the new tariffs in the next few weeks as the 90-day pause approaches an end. 

As for Iran, Trump threatened once more that Iran can not acquire nuclear weapons. 

Corporate Purchases 

Despite the tensions, corporations continued to support bitcoin, with Mercurity Fintech Holding announcing plans to purchase $800 million worth of bitcoin as long-term strategic reserves. 

Gamestop similarly announced plans to gather $1.75 billion of investment to purchase bitcoins in upcoming weeks. 

Analysts are mixed on the outlook of bitcoin, with some expecting a sharp correction towards $95,000, while others believe bulls remain in control with the price heading towards the $140,000-$150,000 range.

Technical Signals Hint at $140,000

Analysts are mixed on the outlook of bitcoin, with some expecting a sharp correction towards $95,000, while others believe bulls remain in control with the price heading towards the $140,000-$150,000 range.

Multiple technical signals and indicators likely pave the way towards a solid breach of the $112,000 recent record high, with a solid target at $143,000, representing a 35% profit.