Gold Drops 0.8% to $3,332.04 as Dollar Strengthens and Tariff Deadlines Extend

Spot gold and silver prices have continued their downward trend, with gold breaching the critical $3,300 support level. By 1250 GMT, spot gold had decreased by 0.8%, settling at $3,332.04 per ounce. This decline is set against a backdrop of growing concerns over U.S. fiscal stability and geopolitical tensions, which had previously driven gold prices upward in 2025. The recent drop in gold prices can be attributed to several factors, including the extension of tariff deadlines and the strengthening of the U.S. dollar, which tends to keep precious metal prices in check.

The decline in gold prices was further exacerbated by the delay in the EU tariff deadline by the Trump administration. As of 0312 GMT, spot gold had dropped by 0.3%, reaching $3,346.59 per ounce. This move was seen as a reaction to the ongoing trade tensions and the potential impact on global markets. The strengthening dollar, coupled with the delay in tariff implementation, created a bearish sentiment among investors, leading to a sell-off in gold.

Silver prices also experienced a decline, with the metal consolidating near the $33.50 mark. The strong dollar has been a significant factor in keeping silver prices at bay, as a weaker dollar is likely to propel prices upward. Other factors, such as investment demand and mining activities, also play a role in determining silver's price movements. The bullish potential for gold seems intact, with the price consolidating around the $3,300 mark. However, analysts warn that if gold falls below $3,300, it could refresh the low of $3,280 and continue to decline.

The recent price movements in gold and silver highlight the sensitivity of these precious metals to geopolitical events and economic indicators. Investors are closely monitoring these developments as they gauge the impact on global markets. The decline in gold prices below the $3,300 support level is a significant development that could influence investor sentiment and market dynamics in the coming days.