Gold Price Falls Below $3,311 as Rate Cut Hopes Fade and Trade Worries Ease
Gold prices dropped by around 0.7% on Monday and slipped below $3,311 per ounce. This fall came as the U.S. delayed its planned tariffs and gave signs that trade talks may improve. Because of this, traders pulled back from safe-haven assets like gold.
The tariff deadline was pushed to August 1, and there is now hope that a trade deal could be reached. This reduced fear in the market, which usually helps gold, and made investors look at other assets instead.
At the same time, strong U.S. economic data and worries about rising inflation pressure have lowered the chances of an interest rate cut from the Federal Reserve in July. Traders now expect only two small rate cuts by the end of the year. This shift has made the U.S. Dollar stronger, which often puts pressure on gold prices since gold is priced in dollars.
Other metals also went down. Silver dropped by around 0.9%, platinum fell by 2.4%, and palladium slipped by 1.9%.
Impact:
If trade worries remain calm and the Fed delays rate cuts, gold may stay weak. But if tensions rise or inflation picks up, gold prices could bounce back.