Gold prices fell to their lowest level in more than a week on Wednesday, pressured by a stronger U.S. dollar, rising Treasury yields, and easing concerns over global trade disruptions.
U.S. gold futures dropped 0.7% to $3,293,4 after President Donald Trump confirmed that new “reciprocal” tariffs, originally announced in April and postponed multiple times, will now take effect in August. While the delay gave nations more time to negotiate, reducing some worst-case trade fears and denting gold’s safe-haven appeal, Trump also warned of potential 50% tariffs on imported copper and fresh levies on pharmaceuticals and semiconductors.
The U.S. dollar index strengthened to a two-week high, while 10-year Treasury yields hovered near their highest in three weeks, increasing the opportunity cost of holding non-yielding bullion and making it more expensive for buyers using other currencies.
Analysts noted that gold’s uptrend since February has broken, with the technical picture turning weaker. Investors are also awaiting minutes from the Federal Reserve’s June meeting for clues on the interest rate outlook, as markets scale back bets on imminent rate cuts.
Despite recent declines, gold remains up roughly 25% this year, supported by central bank buying, including China’s continued purchases for an eighth consecutive month.