Gold prices fall on Trump trade news
Shafaq News
Gold prices dropped on Monday after U.S. President Donald Trump signalled progress on multiple trade agreements and announced extended tariff reprieves for several countries, dampening demand for the safe-haven metal.
Spot gold fell 0.7% to $3,311.09 per ounce as of 0626 GMT. U.S. gold futures lost 0.7% to $3,320.30.
The U.S. is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, Trump said on Sunday, with the higher rates scheduled to take effect on August 1.
In April, Trump announced a 10% base tariff on most nations, with additional duties of up to 50%, before postponing the effective date for all but 10% of those tariffs until July 9. The new date now grants a three-week reprieve.
“This short-term reprieve (by the U.S.) is causing this intraday weakness in the gold price right now,” OANDA senior market analyst Kelvin Wong said.
“What I foresee will be another round of so-called trophy price movement at around the $3,320 level, then we have the top side coming in at $3,360, short-term resistance.”
Meanwhile, Trump said the U.S. will impose an additional 10% tariff on countries that align themselves with the “Anti-American policies” of the BRICS group of developing nations, without clarifying or expanding on the “Anti-American policies”.
Concerns of tariff-driven inflation have led to expectations of slower Federal Reserve rate cuts. Rate futures show traders no longer expect a Fed cut this month and are pricing in a total of just two quarter-point reductions by the year-end. USDIRPR/
Last week, Trump signed into law a massive package of tax and spending cuts at the White House, which, per nonpartisan analysis, will add more than $3 trillion to the country's $36.2 trillion debt.
Spot silver fell 0.9% to $36.58 per ounce, platinum shed 2.4% to $1,358.62 and palladium lost 1.9% to $1,113.23.
(Reuters)
Only the headline is edited by Shafaq News Agency.
