Gold fell as the dollar strengthened at the start of a potentially volatile week that will see U.S. trading partners scramble to finalize deals with the Trump administration ahead of a July 9 tariff deadline.

Bullion fell as much as 1.2% an ounce before paring losses, while the dollar gauge rose 0.4%. President Donald Trump is expected to announce a trade deal and issue a tariff warning later Monday, as countries negotiated through the weekend to avoid the highest-ever levies on their U.S. exports before Wednesday's deadline.

Trump had previously signaled that an additional 10% levy would apply to countries that side with the BRICS group of nations, which would boost the dollar. A stronger dollar typically weighs on gold, making it more expensive for buyers in other currencies.

Bullion is still up more than 25% this year, trading about $180 below a record set in April, with investors seeking safety in the metal amid rising geopolitical and trade tensions. The rally has been supported by inflows into bullion-backed exchange-traded funds, plus strong demand from central banks.

Meanwhile, China added to its official gold reserves for an eighth straight month in June. Its reported holdings have risen by 1.1 million troy ounces — or about 34.2 tonnes — since the current buying began in November last year. Spot gold fell 0.6% to $3,318.93 an ounce as of 4:15 p.m. in London, after rising nearly 2% last week. The Bloomberg Dollar Spot Index rose 0.4%. Silver, palladium and platinum all fell. (alg)

Source: Bloomberg