Gold Falls as Investors Eye US Tariff Moves and Dollar

Gold fell as the dollar rose at the start of a potentially volatile week that will see US trading partners rush to finalize deals with the Trump administration ahead of a July 9 tariff deadline, Bloomberg reported.

Bullion dipped as much as 1.1% an ounce after President Donald Trump signaled an additional 10% levy would apply to countries aligned with the BRICS group of nations, which gave the US dollar a lift. A stronger dollar typically weighs on gold, making it more expensive for buyers in other currencies.

With the US still in the process of negotiating deals, Treasury Secretary Scott Bessent indicated there may be some breathing room for talks, since the levies won’t take effect until Aug. 1.

Bullion is still up more than 25% this year, trading about $190 shy of a record set in April, with investors seeking safety in the metal amid heightened geopolitical and trade tensions. The rally has been supported by flows into bullion-backed exchange-traded funds, plus strong demand from central banks.

BRICS is a grouping that includes Brazil, China, Russia, South Africa and India. Over the weekend, its leaders agreed to continue talks on a cross-border payment system for trade and investment. Trump has previously threatened to slap 100% levies on BRICS if they ditch the dollar in bilateral trade.

Spot gold was down 0.8% at $3,311.44 an ounce at 10:10 a.m. in London, after a gain of almost 2% last week. The Bloomberg Dollar Spot Index added 0.5%. Silver, palladium and platinum all declined.