International News 18 July 2025
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Gold Prices Rise as Dollar and Yields Fall Amid Trade Policy Uncertainty
Gold prices climbed on Wednesday (July 16), buoyed by a weaker U.S. dollar and declining Treasury yields, as investors sought safe haven assets amid ongoing trade tensions. Spot gold rose 0.5% to $3,339.88 per troy ounce, while U.S. gold futures edged up 0.3% to $3,346.70. The drop in the dollar’s value made gold more attractive to foreign buyers, and 10-year Treasury yields retreated from recent highs. Investor sentiment remains cautious due to U.S. President Donald Trump’s tariff threats—up to 30% on imports from Mexico and the EU starting August 1—though he signaled openness to further talks. U.S. consumer prices rose in June, the highest in five months, hinting at inflationary effects from tariffs. While Trump called for immediate Fed rate cuts, the central bank appears poised to maintain rates for now. Markets are now watching the U.S. Producer Price Index data for further cues.
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Japan’s Exports Decline Again in June Amid Rising U.S. Tariff Pressure
Japan’s exports fell for the second consecutive month in June 2025, dropping 0.5% year-on-year, as looming U.S. tariffs weigh on its fragile economy. Exports to the U.S. plunged 11.4%, while shipments to China declined 4.7%. The decline comes after Tokyo failed to reach a trade deal with Washington before the expiration of a tariff pause on July 9. The U.S. plans to impose a 25% tariff on Japanese imports starting August 1 unless a deal is struck. Despite a modest 0.2% increase in imports, Japan posted a trade surplus of ¥153.1 billion (US$1.03 billion), below expectations. The uncertainty around tariffs, coupled with weak domestic consumption and rising living costs, continues to pressure Japan’s economy. Automakers have absorbed tariff costs to stay competitive in the U.S. market, sacrificing profits. Analysts expect the Bank of Japan to delay interest rate hikes due to heightened downside risks.
Oil Prices Dip Amid Rising US Fuel Stocks and Trade War Concerns
Oil prices slightly declined as rising US gasoline and distillate inventories overshadowed signs of improving demand. Brent crude for September 2025 fell 19 cents to $68.52 per barrel, while WTI for August slipped 14 cents to $66.38. US gasoline stocks surged by 3.4 million barrels and distillates by 4.2 million barrels, defying expectations of a drawdown. Refinery utilization neared 94%, but post–July 4 gasoline demand dropped by 670,000 barrels per day. Market sentiment was also pressured by ongoing trade tensions. President Trump warned of heavy tariffs against Russia within 50 days if no Ukraine ceasefire is reached. Reports of his potential move to fire Fed Chair Jerome Powell stirred speculation of interest rate cuts starting in September, which could support energy demand. Meanwhile, global economic signals remain mixed—OPEC expects a recovery in H2 2025, and China has ramped up refinery output to rebuild fuel stocks. However, drone attacks in Iraq’s Kurdistan have cut oil output by up to 150,000 bpd.