Gold prices experienced a decline, influenced by uncertainty surrounding potential tariffs on gold bars imposed by the US and the broader trade landscape. Last week saw the asset gain value initially, driven by its safe-haven status amid trade tensions and expectations of Federal Reserve interest rate cuts. Upcoming economic data releases and geopolitical events are expected to further shape its trajectory.
- Gold prices dropped below $3,380 per ounce on Monday.
- Uncertainty exists regarding the Trump administration’s tariff policy for gold bars.
- A US Customs and Border Protection ruling suggests 1-kg and 100-ounce gold bars are subject to duties.
- Gold gained 1.1% last week due to safe-haven demand and expectations of Fed rate cuts.
- Higher US tariffs on imports from several countries took effect last Thursday.
- President Trump’s August 12 deadline for a US–China deal is approaching.
- Trump and Putin will meet on August 15 to discuss the war in Ukraine.
- Key US economic data releases this week include CPI, PPI, and retail sales.
This information suggests the precious metal is currently facing headwinds from potential trade policy changes and uncertainty surrounding existing tariffs. However, underlying support remains, driven by its traditional role as a safe haven and anticipation of monetary easing. The forthcoming economic data and geopolitical developments will provide further direction as investors assess the interplay between these competing forces.