Gold at over one-week low as higher US dollar, yields dent appeal

Zawya

09-07-2025

Gold prices extended their fall to a more-than-one-week low on Wednesday, as investors favoured the dollar after U.S. President Donald Trump's latest tariff threats reignited fears of a global trade war.
Spot gold was down 0.4% at $3,286.29 per ounce as of 1140 GMT, after falling to its lowest level since June 30 earlier in the session.
U.S. gold futures fell 0.7% to $3,294.20.
"The dollar has stabilised a little bit, and bond yields have risen as well, which kind of reduces the appeal of low-yielding assets like the Japanese yen, gold," said Fawad Razaqzada, market analyst at City Index and FOREX.com.
The U.S. dollar index was up 0.1% after hitting a two-week high in the previous session, while the yield on benchmark 10-year U.S. Treasury notes hovered near a three-week high, denting non-yielding bullion's appeal.
Trump said he would impose a 50% tariff on imported copper and introduce long-threatened levies on semiconductors and pharmaceuticals.
He reiterated his threat of 10% tariffs on BRICS nations on Tuesday, a day after notifying 14 countries, including Japan and South Korea, of tariff increases set to take effect on August 1.
Trade talks with European Union and China were going well, the U.S. president has said, although he has kept open the threat of elevated duties.
Razaqzada expected gold to continue moving sideways in the near term, pegging support at $3,250 on the downside, with resistance at around $3,300 on the upside.
Investors awaited minutes from the U.S. Federal Reserve's latest meeting which are due later on Wednesday for guidance on future interest rate cuts.
Trump has repeatedly criticised Fed Chair Jerome Powell for not cutting interest rates and has floated the idea of naming a successor soon.
Spot silver fell 0.7% to $36.52 per ounce, platinum shed 0.6% to $1,350.49, and palladium retreated 2.4% to $1,084.23.
(Reporting by Brijesh Patel in Bengaluru; Additional reporting by Ishaan Arora; Editing by Sharon Singleton, Barbara Lewis and Rachna Uppal)