Precious Metals Under Pressure: Impact of Trump Tariffs on the Dollar and Fed Hike Expectations

In this Asian session, gold continued to face downward pressure, depreciating below $1.30 per ounce for a second consecutive day. This persistent sell-off has been driven by rising inflation concerns that have bolstered bets on an increase in the US Federal Reserve's benchmark interest rate (Fed funds rate). The application of tariffs on Chinese imports by US President Donald Trump has been the catalyst, leading to a reassessment of global economic risks and strengthening the US dollar. This movement in the gold market aligns with broader trends of divestment from safe-haven assets, where gold traditionally serves as a hedge against inflationary pressures and economic uncertainties. The interplay between macroeconomic dynamics, including political and trade movements, is shaping a short-term scenario where gold faces pressure, while investors closely monitor the Fed's monetary policy decisions in the coming months. Source: FXStreet News