US President Donald Trump has announced a 25% tariff on imports from Japan and South Korea, prompting some safe-haven interest in gold. However, the stronger US dollar continues to pressure the metal.
Spot gold recovered from earlier losses, closing at $3,332.62 an ounce, down 0.1%. The tariffs, set to take effect on August 1, sparked concerns about trade tensions and their impact on global markets. Investors are also awaiting further announcements from the White House on trade negotiations.
The US dollar rose 0.4% against a basket of other major currencies, making dollar-priced gold more expensive for buyers with other currencies. Analysts say central banks, including China’s, have been buying gold to diversify their reserves and hedge against inflation and economic uncertainty.
China’s central bank added gold to its reserves in June for an eighth consecutive month, according to official data. The trend is expected to continue as central banks seek to reduce their reliance on the US dollar and mitigate potential risks.
Source: https://www.reuters.com/world/india/gold-falls-trade-deal-progress-tariff-reprieve-extension-2025-07-07