- Gold falls more than 1% while the US dollar and treasure yields are strengthened.
- Trump delays the deadline of tariffs to August 1, calming commercial nerves.
- Operators reduce Fed cuts expectations by 2025 to only 48 basic points.
The price of gold is falling more than 1% on Tuesday during the American session, since the appetite for its demand as a safe refuge decreased, although US President Donald Trump announced that the first cards of tariffs had been sent to some of the US business partners Precious, which lies at $ 3,297 after reaching a maximum of $ 3,345.
The feeling has improved, as indicated by the main rates of US shares on Monday, Trump imposed tariffs in the range of 25% to 40% to 14 countries, although he decided to postpone the deadline from July 9 to August 1, stating that more extensions would be justified. Those responsible for Policies of Japan and South Korea said they would try to negotiate with the US, seeking a reduction in taxes.
The increase in US treasure yields also presses the price of the ingot, since investors discard features of fees from the Federal Reserve (Fed). The data of the Chicago Board of Commerce revealed that market participants are observing 48 basic points (PBS) of relaxation in 2025.
The operators are waiting for the publication of the last minutes of the Federal Reserve meeting on Wednesday. After that, the agenda will include the publication of the initial applications of unemployment subsidy for the week ending on July 5.
What moves the market today: the gold pressed despite witnessing the greatest entry to the Gold Ethfs
- The grocery trend is questionable as about 3,250 $ approaches. The high yields of the US Treasury and a strong American dollar are weighing on the yellow metal. The 10 -year Treasury Note from US Treasury rose four basic points to 4,423%. The real US yet yields also increased four PBS to 2,073%. The US dollar index (DXY), which tracks the performance of the dollar against a foreign exchange basket, advances 0.20% to 97.70.
- The president of the USA, Donald Trump, commented that the president of the Federal Reserve, Jerome Powell, should immediately resign and that the deadline of August 1 is fixed. He said that some tariff cards are at a rate of 60% or 70%. As for the European Union (EU), he said that the EU is treating the US very well, so he refrained from sending the letter.
- Trump added that it could have been harder in trade and announced that it would impose tariffs on pharmaceutical products, semiconductors and copper, which, he said, would result in tariffs of around 50%.
- The NFIB small businesses optimism index fell to 98.6 in June, slightly below the expectations of 98.7 and a decrease with respect to the reading of May 98.8. The decrease was mainly driven by an increase in the number of respondents cite excessive inventories.
- Although the Xau/USD is still pressured, the World Gold Council (WGC) announced that the Golden ETFs attracted the highest entry in five years during the first half of 2025. “The Gold ETFs recorded an entry of 38,000 million dollars in the first half of 2025, with their collective holdings increasing by 397.1 metric tons of gold.” Total holdings at the end of June increased to 3,615.9 tons, the largest since August 2022.
- The Popular Bank of China (PBOC) revealed that it added 70,000 tons, which means that the central bank’s gold reserves increased by 1.1 million since the purchases resumed last November.
Xau/USD technical perspective: The price of collapse gold to $ 3,300
The Alcista del Oro trend is still at stake, but it seems that buyers are losing strength. It is worth noting that the relative force index (RSI) activated a ‘sales signal’ when crossing under 50, indicating that sellers exceed buyers.
From a price action perspective, the Xau/USD needs to exceed the minimum of June 30, $ 3,246 to open the way to a greater fall, with the simple mobile average (SMA) of 100 days at $ 3,181 in the sights, followed by the minimum of May 15, 3,120 $.
On the contrary, if the Xau/USD rises again above the 50 -day SMA of $ 3,320, a $ 350 test is expected.
GOLD – FREQUENT QUESTIONS
Gold has played a fundamental role in the history of mankind, since it has been widely used as a deposit of value and a half of exchange. At present, apart from its brightness and use for jewelry, precious metal is considered an active refuge, which means that it is considered a good investment in turbulent times. Gold is also considered a coverage against inflation and depreciation of currencies, since it does not depend on any specific issuer or government.
Central banks are the greatest gold holders. In their objective of supporting their currencies in turbulent times, central banks tend to diversify their reserves and buy gold to improve the perception of strength of the economy and currency. High gold reserves can be a source of trust for the solvency of a country. Central banks added 1,136 tons of gold worth 70,000 million to their reservations in 2022, according to data from the World Gold Council. It is the largest annual purchase since there are records. The central banks of emerging economies such as China, India and Türkiye are rapidly increasing their gold reserves.
Gold has a reverse correlation with the US dollar and US Treasury bonds, which are the main reserve and shelter assets. When the dollar depreciates, the price of gold tends to rise, which allows investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rebound in the stock market tends to weaken the price of gold, while mass sales in higher risk markets tend to favor precious metal.
The price of gold can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can cause the price of gold to rise rapidly due to its condition of active refuge. As an asset without yield, the price of gold tends to rise when interest rates lower, while the money increases to the yellow metal. Even so, most movements depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (Xau/USD). A strong dollar tends to keep the price of gold controlled, while a weakest dollar probably thrusts gold prices.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
