Gold Price Forecast: XAU/USD gains momentum to near $3,350 ahead of US CPI release

• Gold price drifts higher to around $3,350 in Tuesday’s early Asian session. 

• Trump threatened secondary tariffs of 100% on Russia.

• The US CPI inflation data for June will be the highlight later on Tuesday. 

The Gold price (XAU/USD) gains ground to near $3,350 during the early Asian session on Tuesday. The precious metal edges higher amid safe-haven demand after US President Donald Trump threatened 100% Russia tariffs. All eyes will be on the US Consumer Price Index (CPI) inflation data, which is due later on Tuesday. 

Trump late Monday threatened to impose 100% tariffs on Russia if President Vladimir Putin does not agree to a deal to end his invasion of Ukraine in 50 days. The US President added that the levies would come in the form of secondary tariffs, without providing details. Geopolitical risks could boost the Gold price, a traditional safe-haven asset, in the near term.  

Nonetheless, the cautious stance of the US Federal Reserve (Fed) might undermine the yellow metal. Fed Chair Jerome Powell said that he expects inflation to increase this summer as a result of tariffs, which is seen as keeping the US central bank on hold until later in the year. 

Meanwhile, Chicago Fed President Austan Goolsbee said that fresh tariffs unveiled by Trump have further muddied the inflation outlook, making it more difficult for him to support the rate cuts that the President has pressed for.

Gold traders await the US CPI data later on Tuesday, as it might offer some hints about the future path for US interest rates. Economists expect US inflation to have picked up slightly last month. However, any signs of softer-than-expected inflation could raise Fed rate cut expectations, supporting the non-yielding Gold price.