Gold slipped early Monday, edging lower after U.S. President Donald Trump’s administration announced several countries would receive tariff reprieves as they work on trade agreements.
With trade partners facing a deadline of Wednesday to strike deals with the U.S., Treasury Secretary Scott Bessent said Sunday that some countries will have the option of a three-week extension to negotiate during an appearance on CNN’s State of the Union. The possibility of a longer period to negotiation lessened haven demand for gold.
But Trump said on social media late Sunday that tariff letters would start being delivered to trading partners on Monday. The tariffs are set to take effect Aug. 1.
August gold futures rose 1.7% last week to settle at $3,342.90 an ounce on Comex, though the front-month contract slid 0.5% Thursday. U.S. financial markets were closed Friday for the Independence Day holiday. Bullion slipped 0.2% in June after losing 0.1% in May and increasing 5.4% in April. It’s up 27% this year. The metal rose 27% in 2024, its biggest annual gain since 2010. The August contract is currently down $26.60 (-0.80%) an ounce to $3316.30 and the DG spot price is $3312.60.
Industrial metals prices fell after Trump threatened to impose tariffs on BRICS bloc countries after they criticized the trade policy. The countries include Brazil, Russia, India, China and South Africa. Trump’s new threatened tariffs would be in addition to those already assessed, he said.
In economic news, U.S. job growth beat expectations in June, according to nonfarm payrolls data for June, which came out Thursday. That may take some of the pressure off the U.S. Federal Reserve to cut interest rates sooner rather than later. The Fed watches both the labor market and inflation data when setting monetary policy.
The Labor Department reported a higher-than-expected seasonally adjusted 147,000 job gain in June, more than the estimated 110,000, and unemployment rate slipped to 4.1% from 4.2% in May. But the private payrolls report from ADP, which came out the day before, showed the private sector lost 33,000 jobs last month. So many investors are still parsing the numbers.
The Fed kept interest rates unchanged at 4.25% to 4.50% last month, though policymakers signaled that the central bank is still factoring two interest rate cuts this year. Most investors tracked by the CME FedWatch Tool expect the Fed to begin interest rate cuts in September, not at policymakers’ next meeting in July.
The Fed reduced rates three times in 2024 but has held them steady this year. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts last year.
Front-month silver futures rose 2% last week to settle at $37.08 an ounce on Comex after the most-active September contract gained 1% Thursday. Silver increased 9.5% in June after adding 0.6% in May and dropping 5.2% in April. It rose 21% in 2024. The September contract is currently down $0.504 (-1.36%) an ounce to $36.580 and the DG spot price is $36.57.
Spot palladium traded at $1,134.00 late Sunday, compared with $1,150.50 a week earlier. Palladium surged 14% last month after advancing 2.8% in May and falling 4.9% in April. Palladium dropped 17% last year. The DG spot price is currently down $32.70 an ounce to $1112.00.
Spot platinum was quoted at $1,381.50 late Sunday, compared with $1,347.40 a week earlier. It climbed 27% last month after gaining 8.6% in May and retreating 3.1% in April. Platinum lost 8.4% in 2024. The current DG spot price is down $16.10 an ounce to $1362.10.
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