Gold Pulls Back as Trump’s Tariff Delay Fuels Risk Appetite

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

• 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.

• Bond Yield Stabilization: After a recent surge, major government bond yields eased in Asia, reducing the appeal of non-yielding assets like gold.

• 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

• 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.

• 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

1. Set Alerts on Policy Updates: Use the Economics Calendar API to catch any shifts in trade-tariff timelines.

2. Hedge with Pairs: Consider long gold versus short USD positions, adjusting as real-time currency data evolves.

3. Monitor Bond Yields: A spike in yields may trigger further gold corrections, so overlay yield curves with bullion charts for early signals.