Gold prices fell slightly in Asian trade on Tuesday, pulling back slightly from an over one-month high hit in the prior session as uncertainty over U.S. tariffs and interest rates kept haven demand strong.
The yellow metal was boosted by reports that the European Union was preparing retaliatory tariff measures against the U.S. over President Donald Trump’s planned tariffs, with Washington seen seeking at least 15% tariffs on the bloc.
Uncertainty over U.S. interest rates and the Federal Reserve also boosted haven demand before a meeting next week. The Fed is widely expected to keep rates unchanged, despite growing calls from Trump that he cut rates immediately.
Spot gold fell 0.2% to $3,389.39 an ounce, while gold futures fell 0.1% to $3,402.0/oz by 00:38 ET (04:38 GMT). Spot prices surged 1.4% to nearly $3,400/oz on Monday.
US tariff fears mount as August 1 deadline nears
Markets remained largely on edge over U.S. tariffs as an August 1 deadline for their imposition drew closer.
Risk sentiment was rattled by waning hopes for an EU-U.S. trade deal, with traders now growing wary of a trade war between the two. The EU was seen preparing retaliatory tariffs in the face of reportedly higher-than-anticipated U.S. tariffs.
The Trump administration announced a scant number of trade deals in recent weeks, driving up concerns that Trump’s proposed tariffs will be imposed in full.
The Trump administration also recently signaled that it was unlikely that it would extend the August 1 deadline. Trump over the past two weeks released a slew of letters outlining tariffs of between 20% and 50% on major U.S. trading partners, sparking market concerns while also drawing threats of retaliation from some countries.
