Gold Prices Fall as Trump Tariff Delay Lifts Risk Appetite

Gold prices declined in Asian trading on Tuesday, extending losses as investor sentiment improved following U.S. President Donald Trump’s decision to delay imposing 50% tariffs on European Union imports. The move boosted appetite for riskier assets and pressured safe-haven gold, with spot gold slipping 0.5% to $3,326.53 per ounce and August gold futures dropping 1.2% to $3,353.09 by 01:30 ET.

Trump’s tariff postponement eased fears of an immediate escalation in global trade tensions, lifting U.S. stock futures despite thin volumes due to a U.S. holiday. While the delay supported broader market optimism, underlying concerns over the economic impact of the tariffs remain. Minneapolis Fed President Neel Kashkari warned the tariffs could trigger a stagflationary environment—marked by weak growth and high inflation. However, he also noted that rate cuts are unlikely in the near term, prompting renewed interest in U.S. Treasuries.

Gold prices were also weighed down by signs of stability in bond markets. Yields on major government bonds retreated after a sharp rise in recent sessions, putting further pressure on bullion. The dollar’s continued softness helped limit gold’s losses, but gains were capped amid broader weakness in the metals market.

Other precious metals followed suit. Platinum futures dropped 1.1% to $1,079.50/oz, while silver futures fell 1.2% to $33.265/oz, with both facing profit-taking after recent rallies. Industrial metals also slipped, as copper prices declined amid easing bond market tensions and fiscal concerns. London copper futures fell 0.6% to $9,562.80 per ton, while U.S. copper futures dropped 1.6% to $4.7730 per pound.

The overall metal market correction reflects shifting investor sentiment as geopolitical and economic developments continue to influence safe-haven demand and inflation expectations.