Gold experienced a notable decline on Monday, falling 0.9% to $3,303.93 per ounce amid dollar strength and trade uncertainty. The dollar’s 0.2% rise against other currencies made gold more expensive for international buyers, contributing to the pullback. Strong U.S. economic data, including solid job growth, has reduced expectations for immediate Federal Reserve rate cuts, further pressuring gold.
President Trump’s approaching July 9 deadline for tariff negotiations adds another layer of complexity, with 10% base tariffs on most countries and up to 50% reciprocal rates scheduled for August 1. Trump also threatened an additional 10% tariff on BRICS nations. While Trump claims progress on trade deals, analysts note the absence of major agreements could lead to trade contraction, potentially supporting gold longer-term. The broader precious metals complex suffered, with silver down 1.9%, platinum falling 2.4%, and palladium losing 1.7%.