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Gold marks heftiest daily loss since May
AI Summary
- Gold prices fell sharply on Monday due to a strengthening US dollar and investors moving away from safe-haven assets following an extension to the US-China negotiation deadline
- US President Donald Trump announced that gold will not be subject to tariffs, overturning a decision by US Customs authorities
- The US dollar index rose 0.4% to 98.5 points, while spot gold fell 2.6% to $3,401.1 an ounce, marking its largest daily loss since May
Gold prices fell on Monday as the US dollar strengthened against most major currencies and investors moved away from safe-haven assets following the announcement of an extension to the negotiation deadline between the US and China.
On Tuesday, the US is set to release consumer price index (CPI) inflation data, with expectations for the core CPI to rise by 0.3% month-over-month in July and by 3% year-over-year.
US President Donald Trump announced via his Truth Social platform that gold will not be subject to tariffs, overturning a decision by US Customs authorities to impose duties on imported bullion from Switzerland.
“Gold will not be subject to tariffs!” Trump wrote in a post on Truth Social.
The White House also revealed that President Trump signed an executive order extending the suspension of elevated US tariffs on Chinese goods for an additional 90 days, according to a White House official quoted by CNBC on Monday afternoon.
The order was signed just hours before midnight, when the temporary freeze on Trump’s tariffs had been set to expire.
Meanwhile, the US dollar index rose 0.4% to 98.5 points at 20:58 GMT, after hitting a high of 99.3 and a low of 98.03.
In metals trading, spot gold fell 2.6% — or $90.5 — to $3,401.1 an ounce at 20:59 GMT, marking its largest daily loss since May.
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