Gold slips amid focus on trade tensions

Gold bars

Gold prices fell on Tuesday, despite market focus on trade tensions following a series of tariff-related announcements by President Donald Trump, as US inflation data for June came in line with expectations.

Gold futures for August delivery dropped 0.70%, or $22.40, to settle at $3,336.70 per ounce.

Earlier today, Trump announced a preliminary deal with Indonesia, under which a 19% tariff would be imposed on its imports—down from the previously proposed 32%—in exchange for exempting US goods from any tariffs.

Separately, official data showed the US Consumer Price Index rose 2.7% year-on-year in June, up from 2.4% in May, aligning with forecasts.

However, Trump urged monetary policymakers to cut interest rates by 3%, saying current inflation levels do not justify continued monetary tightening.

“I think the market continues to be focused on tariffs, keeping gold underpinned. I remain bullish on gold, even though we’re well within the range that has been in place since the middle of May,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.