Spot Gold extended a pullback from a 6-week low of $3,244.41 on Tuesday on the back of a softer US Dollar amid heightened uncertainty regarding the Trump administration’s tariff policies just ahead of the July 9th deadline.
The US Dollar Index was hovering above an over three-year low of 96.614.
A softer dollar makes dollar-priced Gold more appealing to international investors holding other currencies.
Yesterday US President Donald Trump expressed frustration with US-Japan negotiations on trade. In the meantime, Treasury Secretary Scott Bessent warned that countries could receive notifications of significantly higher tariff rates.
Tariffs ranging from 10% to 50%, which were announced on April 2nd, will take effect on July 9th after a 90-day pause, unless bilateral trade agreements are reached.
Trump also continued mounting pressure on the Federal Reserve to lower interest rates, as he sent Fed Chair Jerome Powell a list of global central bank policy rates with handwritten comments stating US rates should be between Japan’s 0.5% and Denmark’s 1.75%.
The upcoming US employment data could indicate labor market weakness and add to expectations of a July rate cut by the Federal Reserve.
Spot Gold was last up 0.91% on the day to trade at $3,333.33 per troy ounce.
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