Gold Prices Decline Globally Amid Strong Dollar and Rising Trade Tensions
Gold prices declined globally on Wednesday, hovering near their lowest levels in over a week, under pressure from a stronger U.S. dollar and rising Treasury yields. The market also reacted to renewed trade tensions sparked by fresh tariff threats from former U.S. President Donald Trump.
Spot gold stood at $3,301.50 per ounce as of 02:34 GMT, while U.S. gold futures dropped by 0.2% to $3,310.10.
The decline comes as the U.S. dollar index stabilized near a two-week high late Tuesday, and 10-year Treasury yields hovered close to their highest level in three weeks — factors that typically weigh on non-yielding assets like gold.
Investor sentiment was further unsettled by Trump’s announcement of a 50% tariff on copper imports, along with additional duties targeting semiconductors and pharmaceuticals. He also reaffirmed plans to impose a 10% tariff on goods from BRICS countries, just one day after notifying 14 nations, including Japan and South Korea, of upcoming tariff hikes set to take effect on August 1.
Despite these headwinds, gold prices have shown relative resilience amid rising yields and a strong dollar, reflecting underlying support and a potential upward bias.
Investors are closely watching the release of the U.S. Federal Reserve’s latest meeting minutes later today, looking for clues on whether the central bank is leaning toward potential interest rate cuts in the coming months.
Global Performance of Other Precious Metals:
- Silver: Fell 0.5% to $36.58 per ounce.
- Platinum: Dropped 0.8% to $1,348.78.
- Palladium: Declined 0.4% to $1,106.29
