Gold drops near $3,300 as U.S. dollar gets slightly stronger
Gold prices went down on Tuesday as the U.S. dollar became a bit stronger. Spot gold fell by 0.6% to $3,307.72 per ounce, while U.S. gold futures dropped 0.8% to $3,327.50. A stronger dollar makes gold more expensive for people using other currencies, which usually lowers demand.
Traders are also keeping an eye on the U.S.–China trade talks happening in London. These talks are focused on important issues like tariffs and export rules for rare earth materials. So far, no big progress has been made, so investors are waiting before making big changes in gold positions.
Gold was also affected by weak economic news from China. The country’s exports slowed down in May, and prices at factories continued to fall. At the same time, markets are looking ahead to the U.S. inflation report coming out on Wednesday. If inflation turns out higher than expected, gold might become more attractive as a safe-haven asset.
Other precious metals also moved. Silver fell 0.5% to $36.52 per ounce, platinum stayed near $1,219.65, and palladium went up 0.4% to $1,078.94.
Impact: If the dollar stays strong, gold could remain weak. But if U.S. inflation is high, gold might get support as investors look for safer options.