XAU/USD: Gold Prices Dip to One-Week Low Under $3,300. What’s Keeping a Lid on Optimism?

Renewed trade war fears and a broad rush to hold US dollars have weighed on the precious metal. What’s ahead may change the narrative.

💸 Gold Slides as Dollar Flexes

• Gold prices XAUUSD were steady near $3,280 early Wednesday, down 0.5% on the day, with the shiny stuff now staring down its third straight daily loss.
• The precious commodity is hovering at its lowest level in more than a week as traders unwind bullish bets and shift into the greenback and other yield-generating plays. Gold, on the other hand, is not yielding anything so it’s not too attractive when yields climb.
• With the dollar index DXY pushing near a two-week high and the 10-year Treasury yield hugging a three-week peak, gold’s safe-haven glow has dulled for now.

🌀 Tariff Threats Stir Uncertainty

• President Trump added fuel to the fire by announcing fresh tariff threats Tuesday: a 50% levy on imported copper and new duties on semiconductors and pharmaceuticals (yet to be revealed).
• He also reiterated his long-threatened 10% tariffs on BRICS nations, adding to the global unease around supply chains and growth risks.
• Fourteen countries, including major trading partners like Japan (where the yen sold off) and South Korea, have been told to brace for tariff hikes starting August 1 — a deadline that’s keeping risk assets and commodities on edge.

🤫 Safe-Haven Status on Pause

• Ironically, gold isn’t riding the trade war fear wave this time — instead, the greenback is out there soaking up the safe-haven flows as traders favor liquidity and yield.
• The metal’s sluggish performance has left some bulls watching the next big catalysts: any signs of easing trade tensions, dovish hints from the Fed, or a data miss that could rattle confidence in the dollar’s strength.
• Until then, gold bugs might want to keep their powder dry — with the precious metal drifting under $3,300, a decisive bounce could need a fresh spark to get the shine back.