Gold prices dip due to strong U.S. payrolls and tariff threats, reducing safe-haven appeal

Gold prices dipped in Asian trading due to a strong dollar and positive labor market data, reducing expectations for rate cuts. Trump’s tariff extension and threats against the BRICS bloc lessened safe haven buying. Spot gold dropped 0.7% to $1,312.12/oz, while futures fell 0.8% to $1,320.67/oz.

The pullback followed a strong U.S. nonfarm payrolls report, signaling sustained labor market strength and lessening rate cut expectations. The strong dollar made gold pricier for foreign buyers, decreasing demand.

President Trump threatened BRICS countries with a new 10% tariff, accusing them of anti-American policies. Despite the threat, his decision to delay tariff enforcement to August 1 reduced immediate risks, impacting gold’s safe-haven appeal.

Investors can track gold prices using the Commodities API for real-time and historical data, and the Economics Calendar API for key economic indicators affecting gold price volatility.

Geopolitical tensions usually drive gold demand, but current focus on macroeconomic fundamentals has limited gold’s near-term upside. Strong U.S. jobs data and a firm dollar have tempered expectations for Fed rate cuts, though gold’s longer-term appeal remains if trade talks sour or inflation rises.