Gold extended its recent slide on Tuesday, with spot prices dipping 0.5% to $3,326.53/oz and August futures off 1.2% at $3,353.09/oz, as President Trump’s decision to postpone 50% EU tariffs rekindled risk-taking. According to FMP’s Commodities API, bullion has retraced some of last week’s gains amid fewer safe-haven flows.
Why Gold Is Under Pressure
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Tariff Turnaround: By deferring steep EU duties until early July—when other reciprocal levies also take effect—markets breathed a sigh of relief and rotated into equities, pushing futures higher.
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Bond Yield Stabilization: After a recent surge, major government bond yields eased in Asia, reducing the appeal of non-yielding assets like gold.
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Dollar Dynamics: The U.S. dollar remains soft but has stabilized; you can track intraday USD moves via FMP’s Forex Daily API, which showed only modest greenback weakness today.
What’s Next for Bullion
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Stagflation Concerns: Minneapolis Fed President Neel Kashkari’s warning of a potential stagflation shock—sluggish growth paired with higher prices—still underpins longer-term gold demand.
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July Tariff Dates: Key policy milestones, including the rescheduled tariff imposition deadline, are listed on the Economics Calendar API, helping traders anticipate renewed volatility.
Actionable Takeaways
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Set Alerts on Policy Updates: Use the Economics Calendar API to catch any shifts in trade-tariff timelines.
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Hedge with Pairs: Consider long gold versus short USD positions, adjusting as real-time currency data evolves.
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Monitor Bond Yields: A spike in yields may trigger further gold corrections, so overlay yield curves with bullion charts for early signals.
