US-Brazil Tensions and Fed Minutes Ignite Opportunities for Gold

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Update: Thursday, 10/07/2025 - 13:02 PM
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The release of the Federal Reserve’sminutes early Thursday (July 10, 2025) exerted pressure on the US dollar. The minutes indicated that a majority of the Federal Reserve board members believe it is appropriate to cut interest rates sometime this year. However, the extent of the potential cut remains a topic of discussion.

This release will likely continue influencing market movements during the European trading session, alongside developments concerning tariffs imposed by US President Donald Trump.

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GOLD
Gold prices (XAUUSD) surged nearly $12 or 120 pips to $3,313.26 per troy ounce this Wednesday, recovering from a previous dip to around $3,282 per troy ounce. Today, Gold further increased to $3,326.25 per troy ounce.

The positive sentiment surrounding Gold was strengthened by the Fed’s minutes, which fueled expectations of two interest rate cuts this year. Additionally, the looming risk of a trade dispute between the US and Brazil positively impacted Gold prices.

Trump imposed a 50% import tariff on Brazil, prompting the South American nation to plan a retaliatory response, heightening the risk of a trade war between the two countries.


OIL
Oil prices (CLS10) failed to record gains, closing on Wednesday at $68.27 per barrel. Oil prices were unable to maintain upward momentum following an EIA report indicating that Oil stocks in the US surged more than 7 million barrels for the week ending July 4.

Such a significant buildup in stocks exerted pressure on Oil prices, which will likely continue to be felt during the European trading session.


EURUSD
EURUSD ended nearly unchanged at 1.17198 during Wednesday’s trading. However, today it rose to 1.17497 due to the pressure faced by the US dollar following the Fed’s minutes release.

Moreover, although the timeframe for US-EU trade negotiations concluded yesterday, negotiations may still resume as the new tariff rates will take effect on August 1.

This scenario has given a positive sentiment to EURUSD.


GBPUSD

GBPUSD edged down to 1.35805 on Wednesday but rose today by 326 points (32.6 pips) to 1.36131. This movement indicates the considerable pressure experienced by the US dollar following the Fed’s minutes.

This sentiment is likely to continue influencing GBPUSD trading during the European session.


USDJPY
USDJPY decreased by 264 points (26.4 pips) to 146.232 during Wednesday’s trading, having previously risen to 147.177. The currency pair reversed direction following the release of the Fed’s minutes, solidifying expectations for two interest rate cuts this year.

On the other hand, the Bank of Japan (BoJ) is set to raise interest rates, which may narrow the interest rate differential between the two, favoring the yen. Evidence of this was shown as USDJPY fell to 145.751 today.

This sentiment is likely to influence USDJPY movements in the European trading session.


Nasdaq
The Nasdaq index reached an all-time high of 23,110 before concluding Wednesday’s trading at 23,043. The Fed’s minutes provided positive sentiment for Nasdaq, as potential rate reductions by the Fed might bolster the US economy.

However, the high position alongside the risk from the US-Brazil trade tensions led the Nasdaq to decline to 22,978 due to profit-taking. There is potential for further profit-taking activities to continue during the European session.


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