Gold fell as investors analyzed President Donald Trump's decision to delay the start of increased tariffs on some trading partners, while insisting that the new deadline is final.
The precious metal fell as much as 1.5%, with investors awaiting more details on the president's approach to negotiations, following this week's move to delay the imposition of all tariffs from April 2 to August 1, effectively giving each affected country an extra three weeks to reach a deal.
"Tariffs will start being paid on august 1, 2025. There has been no change to this date, and there will be none," Trump wrote on his Truth Social platform on Tuesday.
Treasury yields and greenback gauges rose on Tuesday, putting pressure on non-interest-bearing gold. A stronger dollar also weighed, making the precious metal more expensive for buyers in other currencies.
"The foreign exchange and bond markets are really putting pressure on commodities, including precious metals," said Nicky Shiels, head of metals strategy at MKS Pamp SA.
Gold has risen significantly this year, hitting a record in April, as Trump's efforts to overhaul trade policies fueled uncertainty, boosting demand for safe-haven assets. The advance has been supported by central bank accumulation, with China announcing a fresh increase in official holdings earlier this week.
"Central banks are likely to continue adding gold to their reserves given the still uncertain economic environment and the push to diversify away from the U.S. dollar," said ING Groep NV strategist Ewa Manthey.
Spot gold fell 1.2% to $3,297.77 an ounce as of 5:11 p.m. in London. The Bloomberg Dollar Spot Index rose 0.2%, after rising 0.5% on Monday. Palladium, silver and platinum all fell. (alg)
Source: Bloomberg
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