Gold prices declined on Tuesday, with spot prices falling 0.5% to $3,326.53/oz and August futures dropping 1.2% to $3,353.09/oz. This decline follows President Trump’s decision to defer 50% EU tariffs, resulting in increased risk-taking among investors. According to Entreprenerdly’s Commodities API, gold has given back some gains from last week due to decreased safe-haven demand.

Factors Contributing to Gold’s Pressure

• Tariff Delay Effects: Trump’s postponement of steep EU tariffs has reassured markets, allowing investors to shift back into equities.
• Bond Yield Adjustments: With major government bond yields stabilizing in Asia, gold’s appeal diminished as investors seek yield.
• Dollar Stability: The U.S. dollar’s recent stabilization continues to influence gold’s pricing dynamics.

Future Outlook for Gold

• Ongoing Stagflation Concerns: Kashkari’s warning about potential stagflation continues to support long-term gold demand.
• Monitoring July Tariff Timeline: Significant policy dates, including new tariff impositions, will be critical for traders and can be monitored through our Economics Calendar.

Key Takeaways

1. Track Policy Updates: Utilizing the Economics Calendar is essential for remaining informed on trade-tariff timelines.
2. Hedging Strategies: Explore gold vs USD positions while adapting to real-time currency data shifts.
3. Yield Monitoring: Stay attentive to bond yield movements as rises could lead to further corrections in gold prices.