Gold prices experienced a slight decline at the beginning of this week, amid rising geopolitical tensions and changes in US trade policy. The decline occurred after US President Donald Trump hinted that he would impose an additional 10% tariff on countries that side with the BRICS group. The threat encouraged the strengthening of the US dollar, which in turn pressured gold prices. Gold bullion fell by 0.9%, trading near $3,306 per ounce.

Investors are now monitoring the direction of US trade policy ahead of the tariff deadline on July 9. Treasury Secretary Scott Bessent signaled a possible extension of the negotiation period, while Commerce Secretary Howard Lutnick said the tariffs would be implemented gradually starting August 1. This uncertainty has encouraged the market to seek clarity, but has also limited interest in safe haven assets such as gold in the short term.

Despite the decline, gold prices are still up more than a quarter since the beginning of the year. This surge was driven by global concerns, increasing demand from central banks, and inflows into gold-based ETFs. Investors still see gold as a hedge against inflation and geopolitical risks, especially after Trump also threatened 100% tariffs on BRICS countries if they abandon the dollar in bilateral trade.

At 11:05 a.m. Singapore time, spot gold prices fell 0.8% to $3,309.31 an ounce, while the U.S. dollar rose 0.1%. Other precious metals such as silver, palladium and platinum also weakened. The market is now focused on the direction of U.S. policy and global trade relations which will be the main determinants of gold's movement in the coming weeks.
Source: newsmaker.id