As part of the agreement, the U.S. will reduce tariffs on Chinese imports—imposed in April—from 145% to 30%, while China will cut tariffs on U.S. goods from 125% to 10%. These revised tariffs will be in effect for 90 days.
Following the announcement, the U.S. dollar surged to a one-month high, and global stock markets rallied. A stronger dollar makes gold more expensive for foreign investors, further pressuring gold prices.
“June gold futures buyers have lost their near-term technical advantage,” said Jim Wyckoff, senior analyst at Kitco Metals. “The next upside price target is closing above solid resistance at $3,350, with initial resistance at $3,250 and then $3,275.”
Investors are now awaiting the release of the U.S. Consumer Price Index (CPI) on Tuesday to gain insight into the Federal Reserve’s policy direction. Other key data due this week include the Producer Price Index (PPI) and retail sales figures.
Lower interest rates would enhance the appeal of gold, which does not yield interest, making it a more attractive investment.
Meanwhile, silver prices dropped 0.9% to $32.40 per ounce, platinum fell 1.9% to $976.06, and palladium slid 3.4% to $942.69.
