Gold Slips as Strong Dollar, Diminished Rate Cut Expectations Weigh on Metal Prices
Gold prices declined in Asian trading on Monday, as strength in the U.S. dollar and easing expectations for interest rate cuts weighed on the metal. The downside was further driven by new tariff threats from President Donald Trump, although the impact on safe-haven demand was limited due to a delay in implementation.
Spot gold dropped 0.7% to $3,312.12 per ounce, while September gold futures fell 0.8% to $3,320.67 per ounce by 00:10 ET (04:10 GMT).
President Trump announced Sunday that his proposed tariff hikes—originally scheduled to take effect on July 9—would now be delayed until August 1, potentially providing time for new trade agreements. He also said he would begin sending formal tariff notifications to major economies starting Monday, although specific details were lacking. Earlier in the year, he had proposed tariff rates ranging from 10% to 50%.
In a separate move, Trump threatened an additional 10% tariff on nations aligned with the BRICS bloc, which he described as hostile to U.S. interests. Despite these warnings, the delay in enforcement reduced the urgency for investors to seek safe-haven assets like gold.
Meanwhile, the U.S. dollar remained steady following a strong nonfarm payrolls report last week. The robust labor data diminished market expectations that the Federal Reserve would cut interest rates in the near term.
As a result, gold and other metals, which are priced in dollars, came under further pressure. The Fed is now widely expected to hold rates steady at its upcoming meetings in July and September, with traders significantly reducing bets on any near-term cuts, according to CME FedWatch.
The dollar also attracted some support from Trump’s renewed tariff rhetoric, adding to the metal market’s bearish tone.
Other precious metals followed gold’s lead: platinum futures fell nearly 2% to $1,381.00 per ounce after strong gains in June, while silver futures dropped 0.6% to $36.91 per ounce.
Among industrial metals, benchmark copper on the London Metal Exchange declined 0.6% to $9,807.10 per ton, and U.S. copper futures dropped 1% to $5.0130 per pound.
Despite Trump’s repeated claims of sealing numerous trade deals, the U.S. has only finalized agreements with a handful of countries—including the UK, China, and Vietnam—falling short of his “90 deals in 90 days” pledge.
