Gold prices edged lower on Tuesday as rising U.S. Treasury yields dented demand for the non-yielding metal, while investors assessed the impact of President Donald Trump’s latest tariff measures.
U.S. gold futures fell 0.25% to $3,334.80. The yield on 10-year Treasuries climbed to a two-week high, making bullion less appealing.
Trump announced steep new tariffs of up to 40% on 14 countries, including Japan, South Korea, South Africa, and Thailand, set to take effect August 1. While he left room for further negotiations, only Britain and Vietnam have reached deals so far. China, meanwhile, warned it could retaliate if the U.S. tried to exclude it from supply chains.
Gold has surged to record highs this year on trade war tensions and central bank buying, with China recently increasing its official reserves. However, the prospect of prolonged trade disputes and higher inflation complicates the Federal Reserve’s path to potential rate cuts. Investors are now awaiting the minutes from the Fed’s June meeting for signals on future policy.