Gold Slips as Dollar Ticks Higher, US Tariff Deadline Looms

SEATTLE (Scrap Monster): Gold prices slipped to a near one-week low on Monday due to an uptick in the U.S. dollar, with investors awaiting details on the trade front ahead of U.S. President Donald Trump's tariff deadline.

Spot gold fell 0.8% to $3,309.09 per ounce by 0845 GMT. U.S. gold futures shed 0.7% to $3,319.

 "We are seeing a slight pullback due to short-term positive dollar and maybe that's just due to the fact that the economic data coming from the U.S. is still pretty strong, taking away the immediate need to cut rates," said WisdomTree commodities strategist Nitesh Shah.

The dollar rose 0.4% against its rivals, making gold more expensive for other currency holders.

Last week, data showed U.S. job growth was unexpectedly solid in June. Also, concerns about tariff-driven inflation have led to expectations of slower Federal Reserve rate cuts.

Minutes from the Fed's last meeting due later this week could shed more light on the U.S. central bank's rate cut path.

Meanwhile, the U.S. is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, Trump said on Sunday, with the higher rates scheduled to take effect on August 1.

Trump in April announced a 10% base tariff rate on most countries and higher "reciprocal" rates of up to 50%, with an original deadline of this Wednesday.

"The 90-day period of lower tariffs is expiring and there has not been any fantastic trade deals, which does point towards net trade contracting during the course of this year, which is not supportive for the economy and more likely to be support for gold," Shah said.

Trump also threatened an extra 10% tariff on countries aligning themselves with the "anti-American policies" of the BRICS group of developing nations.

Elsewhere, spot silver fell 0.9% to $36.56 per ounce, platinum dipped 2.5% to $1,357.25 and palladium lost 2.1% to $1,111.21.

 Courtesy: www.reuters.com