Gold prices fall due to a strong dollar and potential US tariff moves

Gold prices fell as the dollar strengthened, with bullion dropping 1.2% before paring losses. Trump is set to announce trade deals and issue tariff warnings, driving countries to finalize agreements before the July 9 deadline. A potential 10% levy on BRICS-aligned nations boosted the dollar, impacting gold prices globally.

Despite the drop, gold remains up over 25% this year, trading close to a record high set in April. Investor demand for the safe-haven asset has been strong due to geopolitical tensions. China has increased its gold reserves for the eighth consecutive month, adding 1.1 million troy ounces in June.

Spot gold was down 0.6% at $3,318.93 an ounce in London, following a 2% increase last week. The Bloomberg Dollar Spot Index rose 0.4%, leading to declines in silver, palladium, and platinum prices. Central bank demand and ETF flows continue to support the overall gold market.

Read more at Yahoo Finance: Gold Falls as Investors Eye US Tariff Moves and Dollar