Gold prices fell as the US dollar strengthened, amid concerns over new tariffs set by President Trump. The tariffs could impact global trade and inflation expectations. XAU/USD rose, but traders should watch for volatility around the upcoming US CPI report. A higher-than-expected inflation could decrease XAU/USD, while slowing inflation may boost it.

The euro remained weak as the US dollar gained ahead of the US CPI report. Fed Chair Powell suggested inflation may rise due to tariffs, potentially delaying rate cuts. Concerns over Fed independence persist as Trump criticizes Powell’s policies. The US dollar remains a safe-haven amid trade uncertainty.

The British pound traded near a three-week low as BoE Governor Bailey hinted at deeper rate cuts. Bailey emphasized the need to address economic slack and ensure sustainable inflation. Markets await UK labor market and inflation reports for insight into rate cut expectations. A trade agreement with the US may offer short-term support to the UK economy amidst global trade tensions.

Read more at Investing.com: Gold Prices Slip as US Dollar Gains Ahead of CPI and Trade Tensions