Gold Prices Slide as Strong Dollar and Tariff Uncertainty Weigh on Market

Gold prices fell in Asian trading on Friday, pressured by a resilient U.S. dollar and mixed signals surrounding President Donald Trump’s trade tariff agenda. Spot gold dropped 0.7% to $3,293.44 an ounce, while August gold futures slipped 0.8% to $3,316.67 by early morning trade.

The yellow metal is on track for a weekly loss, driven by sustained dollar strength and profit-taking following record highs earlier in May. Despite brief gains after an appeals court reinstated Trump’s proposed tariffs, uncertainty surrounding his shifting stance limited support for bullion. Earlier in the week, gold prices declined when Trump delayed imposing steep tariffs on the EU, followed by a court ruling temporarily blocking those tariffs.

The dollar held firm, supported by better-than-expected U.S. GDP data showing a smaller contraction in Q1 and Federal Reserve comments suggesting no near-term rate cuts. These developments bolstered the dollar, applying downward pressure on gold and other precious metals. Platinum fell 0.6% to $1,074.85 per ounce, and silver slid 1% to $33.075. Industrial metals also weakened, with LME copper down 0.1% to $9,564.40 per ton and U.S. copper futures dipping 0.4% to $4.6535 per pound.

Markets are now focused on the upcoming PCE price index data—considered the Fed’s preferred inflation gauge—which is expected to show persistent inflation above the central bank’s 2% target. This could further reinforce the Fed’s cautious stance on interest rates.

Meanwhile, social media buzzed with the term “TACO” (“Trump Always Chickens Out”), mocking the president’s inconsistent trade policy moves, which have added volatility but little clear direction for the gold market.