Gold News: Bears Press as Dollar Strength and Tariffs Hit Gold Prices

Gold Slips as Tariff Tensions and Higher Treasury Yields Pressure Bulls

Gold prices fell for a third straight session on Wednesday as traders rotated into the U.S. dollar and Treasuries, leaving bullion near a one-week low while holding below key technical levels.

The metal is trading under the $3,310.48 pivot and the 50-day moving average at $3,321.30, signaling that bears remain in control as tariff headlines and yield gains continue to weigh on sentiment.

At 12:41 GMT, XAU/USD is trading $3294.96, down $6.75 or -0.20%.

Trump’s Tariff Threats Shake Market Sentiment

President Trump reignited global trade war concerns by pledging a 50% tariff on imported copper and signaling levies on semiconductors and pharmaceuticals. He also confirmed 10% tariffs on BRICS nations and announced steep tariff hikes on 14 countries, including Japan and South Korea, effective August 1.

While Trump left the door open for further negotiations, traders are recalculating inflation and global demand risks, with Julius Baer noting that escalating tariffs could intensify stagflation pressures in the U.S. and force Europe to stimulate domestic demand.

Treasury Yields Hold Gains as Traders Eye Fed Minutes

The benchmark 10-year Treasury yield hovered near a three-week high at 4.407%, while the 2-year yield remained steady at 3.903%. This yield stability reflects markets adjusting to Trump’s aggressive trade stance while awaiting the Federal Reserve’s meeting minutes for further rate cut signals.

Persistent higher yields continue to erode the appeal of non-yielding assets like gold, with traders recalibrating exposure in anticipation of Fed guidance on easing.

Dollar Index Holds Firm as Trade War Fears Build

The U.S. dollar index edged up 0.1%, extending its recent rally as traders moved into the greenback on safe-haven demand tied to escalating trade tensions.

The dollar traded at 146.71 yen, up 1.5% so far this week, marking its strongest weekly gain since mid-December. Export-heavy Japan has yet to reach a deal with the U.S., fueling uncertainty and supporting the dollar’s advance while keeping gold under pressure.

Gold Prices Forecast: Bearish Bias Holds Below Key Resistance

Technical charts confirm room to the downside, with the June 30 low at $3,244.41 and the longer-term pivot at $3,228.38 as near-term targets if sellers maintain control. Overtaking the $3,365.92 resistance would be required to signal renewed bullish interest.

Until then, higher U.S. Treasury yields, a firmer dollar, and tariff uncertainties continue to cap gold’s upside potential, keeping the outlook bearish in the short term while traders watch for clearer signals from upcoming Fed commentary.

More Information in our Economic Calendar.