July 28 International Forex News

Gold and Silver Move in Opposite Directions, Short-Term Volatility May Continue

July 28: A research report by Tongguan Jinyuan Futures pointed out that as the U.S. and Iran paused two weeks of hostile military actions, international crude oil futures prices plunged, easing concerns over inflation and the risk of rising interest rates. However, signals from both sides remain sharply divided. The U.S. military suspended airstrikes in an attempt to leave room for negotiations, but there are divisions within the U.S. over resuming hostilities. Iran, meanwhile, firmly denies negotiations with the U.S. and maintains a tough countermeasure stance.

At the same time, Saudi Aramco’s key Abqaiq oil facility was reportedly attacked and caught fire, posing a major shock risk to global crude oil supply and the energy market. Trump said that pausing strikes on Iran is giving negotiations another chance; talks may produce results, but if no agreement is reached, the U.S. will “go big again.”

The Federal Reserve will announce its interest rate decision on Wednesday. The meeting is expected to keep policy unchanged, while Waller’s post-meeting remarks on inflation and the interest rate outlook will be more important. At present, the U.S.-Iran situation is in a fragile ceasefire, but signals from both sides remain sharply divided, and uncertainty risks in the Middle East remain. Close attention should be paid to developments in the situation, this week’s upcoming Fed rate decision, and monetary policy clues from Waller’s post-meeting speech. Precious metals are expected to remain volatile in the short term.

U.S. Trade Representative Greer: New Tariffs Will Not Bring Additional Economic Impact

July 28: U.S. Trade Representative Greer said on Monday local time that the newly implemented Section 301 tariff measures will not create new economic impacts beyond what the economy is already absorbing.

Greer said that the new tariffs imposed by President Trump on 60 trading partners may not have an economic impact, partly because the 10% or 12.5% rates are similar to earlier global tariff actions. Greer said the new Section 301 tariffs target a smaller group of countries than the previously broadly applied 10% temporary tariffs. But the agency said the new tariffs will still cover 99.4% of U.S. imports.