Gold prices fell as traders reacted to President Donald Trump’s indication that an additional 10% tariff would be imposed on countries aligning with the BRICS group of nations.
The announcement sparked shifts in the market as investors closely monitored changes in U.S. trade policy, News.Az reports, citing Bloomberg.
Bullion lost as much as 0.9% to near $3,306 an ounce following the president’s threat, which gave the US dollar a small lift. With the US negotiating deals ahead of an initial July 9 tariff deadline, Treasury Secretary Scott Bessent indicated a possible extension to negotiations, and Commerce Secretary Howard Lutnick said country-by-country tariffs would take effect Aug. 1.
Bullion remains more than a quarter higher this year, trading about $190 shy of a record set in April, with investors seeking safety in the metal amid heightened geopolitical and trade tensions. The rally has been supported by flows into bullion-backed exchange-traded funds, plus strong demand from central banks.
BRICS is a grouping that includes Brazil, China, Russia, South Africa and India. Over the weekend, its leaders agreed to continue talks on a cross-border payment system for trade and investment. Trump has previously threatened to slap 100% levies on BRICS if they ditch the dollar in bilateral trade.
Spot gold was down 0.8% at $3,309.31 an ounce at 11:05 a.m. in Singapore, after a gain of almost 2% last week. The Bloomberg Dollar Spot Index added 0.1%, dulling bullion’s allure. Silver, palladium and platinum all declined.
