Gold prices edged lower during Monday’s trading session in Asia, pressured by a stronger U.S. dollar and revived trade tensions after new tariff threats from President Donald Trump. Additionally, stronger-than-expected U.S. employment data last week has dampened hopes for near-term interest rate cuts, adding downward pressure on the precious metal.
Despite Trump’s fresh warnings on tariffs, gold struggled to attract safe-haven demand, mainly because the president delayed the implementation of new tariffs from July 9 to August 1, giving trading partners more time to negotiate.
Trump also said he would begin sending formal letters this week to key countries detailing tariff changes. Moreover, he threatened to slap an extra 10% tariff on nations aligned with the BRICS bloc, branding them “anti-American.” However, these announcements had limited effect on boosting gold, as the tariff delay lessened the immediate risk of trade disruptions.
Since April, Washington has finalized only a few trade deals—with the UK, China, and Vietnam among them—falling short of Trump’s ambitious goal of securing 90 agreements in 90 days.
The U.S. dollar remained firm, maintaining gains from the previous week, buoyed by robust nonfarm payroll figures that showcased labor market strength despite economic challenges. This data significantly lowered expectations for Federal Reserve rate cuts in upcoming meetings. As a result, market participants largely abandoned bets on a July rate reduction and instead increased the likelihood of steady rates through September, according to CME FedWatch.
A stronger dollar typically weighs on gold and other metals since they become costlier for investors holding other currencies. Alongside gold, other precious metals also retreated: platinum futures dropped nearly 2% to $1,381 per ounce after a strong rally in June, while silver futures dipped 0.6% to $36.91 per ounce.
Industrial metals were also under pressure, with benchmark copper futures on the London Metal Exchange falling 0.6% to $9,807 per ton, and U.S. copper futures down 1% to $5.013 per pound.