Gold slips with investors wary of US trade moves and firm dollar
&imwidth=600&imheight=450&format=webp&quality=medium "Gold slips with investors wary of US trade moves and firm dollar")
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich. Photograph: (Reuters)
Gold prices dipped as a stronger US dollar and uncertainty around upcoming tariff decisions prompted cautious trading in precious metals.
Gold prices slipped on Monday as investors tracked evolving signals from the United States on trade policy, with a stronger dollar weighing on bullion demand and markets bracing for tariff-related uncertainty. According to Bloomberg, spot gold fell as much as 0.9 per cent to trade near US$3,306 an ounce during Asian hours, paring last week’s gains as traders grew cautious about shifting US trade dynamics and upcoming tariff deadlines.
Dollar gains put pressure on bullion
A mild strengthening of the US dollar reduced gold’s appeal for investors using other currencies. Bloomberg’s Dollar Spot Index edged up 0.1 per cent in Asian trading, limiting bullion’s safe-haven flows.
Spot gold was last quoted down 0.8 per cent at US$3,309.31 an ounce in Singapore on Monday morning.
The metal had rallied almost 2 per cent last week but is now consolidating as traders reassess risks around global trade negotiations and the timing of new US tariff announcements. Other precious metals also moved lower, with silver, palladium and platinum all posting declines, according to Bloomberg.
Trade tensions keep markets on edge
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Investors remain focused on the complex backdrop of US trade negotiations, with Treasury Secretary Scott Bessent over the weekend hinting at the possibility of extending talks with key partners beyond the initial 9 July notification deadline. Commerce Secretary Howard Lutnick confirmed that new country-specific tariffs are scheduled to take effect on 1 August.
As per Bloomberg, these shifting timelines have added to market caution, given the potential for tariffs to disrupt global supply chains and weigh on overall economic growth.
Bullion’s strong year-to-date gains
Despite Monday’s decline, gold remains more than 25 per cent higher for the year, trading roughly US$190 below its all-time high set in April. The rally has been underpinned by strong demand from central banks, heightened geopolitical tensions and steady inflows into bullion-backed exchange-traded funds.
According to Bloomberg, the safe-haven asset continues to attract investors seeking to hedge against volatility in equities, currencies and commodity markets amid ongoing uncertainty about global economic prospects. With markets sensitive to any updates on US trade negotiations, analysts expect gold to remain volatile in the coming weeks as traders weigh the timing and scope of new tariff measures and broader policy signals from Washington.
(With inputs from the agencies)