WASHINGTON (dpa-AFX) - Gold moved modestly lower on Tuesday as investors continued to assess the impact of aggressive US trade levies on its trading partners.
Front Month Comex Gold for July delivery fell $25.20 (or 0.76%) to $3,307.00 per troy ounce today.
Front Month Comex Silver for July delivery lost 14.30 cents (or 0.39%) to $36.472 per troy ounce today.
Trump has announced new tariffs for 14 nations including Japan and South Korea. These levies (ranging from 25% to 40%) take effect beginning August 1, giving around a month's time for these countries to negotiate.
Softening his stance, Trump indicated willingness to reduce the levies if these countries revised their policies. Hence, the final tariffs shall be known only after three to four weeks.
Notably, the US has closed deals with the UK, China, and Vietnam, and a deal with India is almost done.
Yesterday, Trump announced that he is planning to charge additional 10% tariff on BRICS nations and their allies. However, no further details have emerged.
Investors are also factoring in concerns about the future of the US economy and the US Dollar as the 'Big, Beautiful Bill' that Trump signed last Friday is projected to add a mammoth $3.3 trillion to the already-existing gargantuan US national debt.
Last week's US jobs data showing decent numbers had quelled expectations of a Fed interest rate cut anytime sooner than September. Investors now await the June FOMC Minutes scheduled to be released tomorrow to gain insights into the Fed's monetary policy outlook.
On the geopolitical front, the ceasefire announced by Trump on June 24 between warring Israel and Iran continues to remain alive with no regressive moves from either side.
Earlier, Iranian President Masoud Pezeshkian stated Tehran can resolve its differences with the US through dialogue.
On the economic data front, the Johnson Redbook Index (year-over-year same-store sales growth) showed an increase by 5.90 percent for the week ending July 5.
The US consumer inflation expectations for the year ahead declined to 3.2% in May from 3.6% in April
Bond yields for 52-week bill rose to 4.10% today, marking a 0.01% increase from the previous session.
Of late, central banks across the world are diversifying their holdings away from the US Dollar and accumulating gold.
The People's Bank of China added 70,000 troy ounces of gold to its reserves in June. This is the eighth consecutive month of gold purchase.
Analysts feel that gold may consolidate after the tariff picture becomes clearer in the upcoming weeks.
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