Gold prices fall on Trump trade news
Gold prices dropped on Monday after U.S. President Donald Trump signalled progress on multiple trade agreements and announced extended tariff reprieves for several countries, dampening demand for the safe-haven metal.
Spot gold fell 0.7% to $3,311.09 per ounce as of 0626 GMT. U.S. gold futures lost 0.7% to $3,320.30.
The U.S. is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, Trump said on Sunday, with the higher rates scheduled to take effect on August 1.
In April, Trump announced a 10% base tariff on most nations, with additional duties of up to 50%, before postponing the effective date for all but 10% of those tariffs until July 9. The new date now grants a three-week reprieve.
'This short-term reprieve (by the U.S.) is causing this intraday weakness in the gold price right now,' OANDA senior market analyst Kelvin Wong said.
'What I foresee will be another round of so-called trophy price movement at around the $3,320 level, then we have the top side coming in at $3,360, short-term resistance.'
Meanwhile, Trump said the U.S. will impose an additional 10% tariff on countries that align themselves with the 'Anti-American policies' of the BRICS group of developing nations, without clarifying or expanding on the 'Anti-American policies'.
Concerns of tariff-driven inflation have led to expectations of slower Federal Reserve rate cuts. Rate futures show traders no longer expect a Fed cut this month and are pricing in a total of just two quarter-point reductions by the year-end. USDIRPR/
Last week, Trump signed into law a massive package of tax and spending cuts at the White House, which, per nonpartisan analysis, will add more than $3 trillion to the country's $36.2 trillion debt.
Spot silver fell 0.9% to $36.58 per ounce, platinum shed 2.4% to $1,358.62 and palladium lost 1.9% to $1,113.23.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Shafaq News
3 hours ago
- Shafaq News
Al-Sulaymaniyah unveils key infrastructure projects
Shafaq News – Al-Sulaymaniyah Two major projects, a public infrastructure tunnel and a riverside tourism development, were inaugurated in Al-Sulaymaniyah on Monday. The first, the 'Wali Tunnel,' is located along Hawari Street in central Al-Sulaymaniyah. Constructed under the direct supervision of the city's municipality in coordination with the private sector, the tunnel cost approximately 8 billion Iraqi dinars (5.669 million USD). It is expected to ease heavy traffic around the city center and the nearby Kobani Bridge, and is considered a key step in upgrading Sulaymaniyah's urban road network. The second initiative, the 'Darwaza Corniche,' is a new tourism site built along the banks of the Qeliasan River. The project provides an open, natural space for residents and visitors to enjoy outdoor recreation, contributing to the city's growing appeal as a tourist destination. According to officials, these projects 'align with the Kurdistan Regional Government's development strategy to invest in vital infrastructure and improve quality of life for residents,' in response to Al-Sulaymaniyah's rapid urban growth in recent years.
Shafaq News
5 hours ago
- Shafaq News
Water shortage in Basra: Upstream violations end agriculture, endanger fish
Shafaq News – Basra Basra is facing a severe water crisis that threatens its food security and environmental stability, local officials warned. Citing a sharp decline in freshwater supplies from central Iraqi provinces and rising salinity levels in the Shatt al-Arab waterway, the agricultural authorities stated that unauthorized water use by neighboring provinces has worsened the situation, leading to the collapse of thousands of acres of farmland and a sharp decline in livestock and fish production. Official data indicates the province now receives only half its allocated water share, prompting urgent calls for federal intervention to ensure equitable distribution. 'As the last province on the river system, Basra simply doesn't receive the full amount,' Hadi Hussein, Director of Agriculture in Basra, stated to Shafaq News. Hussein pointed to clear violations from Wasit and Maysan provinces, and more extensive ones from Dhi Qar, particularly affecting the Bad'ah Canal, Basra's main source of drinking water. He noted that Maysan alone has 367 licensed fish ponds, ranging from 5 to 500 dunams (a local unit of area), while unlicensed ponds exceed 2,000 in number, some as large as 1,000 dunams. These operations consume vast amounts of water, contributing to shortages in Basra. The water allocation for Basra is officially set at 107 cubic meters per second, but actual flow at the Qal'at Saleh regulator falls below 57 cubic meters per second, over 50 cubic meters short. Hussein said most of that loss occurs in Maysan, leading to higher salinity and further degradation of water quality. Stressed that neighboring provinces directly impact Basra's water crisis, Hussein clarified that 'If we received our full share, the province would not be facing such shortages or the saltwater intrusion from the Shatt al-Arab.' In 2023, a government order mandated the removal of 64 unauthorized fish ponds in Basra's Qitayban and Musahib areas of al-Hartha district. Hussein confirmed the ponds were dismantled in coordination with local authorities and security forces, and that no illegal ponds currently remain, based on local agricultural department reports. However, 44 licensed fish ponds have ceased operations entirely due to saltwater encroachment, affecting both production volume and market prices. 'The administrative process for licensing fish ponds is simple,' Hussein explained, 'but current ministry guidelines prohibit issuing new permits,' which has led some individuals to build unlicensed ponds, placing additional stress on Basra's water share. The province's fish farming industry has suffered significantly from both reduced water flow and increased salinity. Hussein warned of further production declines and rising prices, noting that Basra was once a major fish producer in Iraq. In past years, Basra cultivated over 2,000 dunams of watermelon in the Luhais area, along with 1,700 dunams of cantaloupe, in addition to okra and other vegetables. These lands will lie fallow this summer as a result of the suspended plan.
Shafaq News
5 hours ago
- Shafaq News
Official toll: Iran reports 1,100 killed in recent conflict
Shafaq News – Tehran A total of 1,100 Iranian people were killed during Iran's recent 12-day conflict with Israel, Saeed Ohadi, head of the Foundation of Martyrs and Veterans Affairs, announced on Monday, as an official death toll released by Tehran since the fighting began on the 13th of June. In a televised interview, Ohadi added, 'The burial efforts are ongoing and that 1,060 of the victims have been laid to rest so far,' noting that the final toll may still rise, as some of the wounded remain in intensive care and others have yet to be identified. Among the victims, 126 were women and 41 were children, Ohadi explained, accusing Israel of 'deliberately targeting civilians in violation of international law.' The Iran-Israel war, which erupted on June 13 and lasted for 12 days, resulted in heavy casualties and widespread infrastructure damage on both sides. The conflict also saw US involvement, including strikes targeting Iranian nuclear facilities.
