(Bloomberg) -- Gold fell as traders sought to track shifts in US trade policy, with bullion edging lower as President Donald Trump signaled an additional 10% tariff would apply to countries aligned with the BRICS group of nations.
Bullion lost as much as 0.9% to near $3,306 an ounce following the president’s threat, which gave the US dollar a small lift. With the US negotiating deals ahead of an initial July 9 tariff deadline, Treasury Secretary Scott Bessent indicated a possible extension to negotiations, and Commerce Secretary Howard Lutnick said country-by-country tariffs would take effect Aug. 1.
Bullion remains more than a quarter higher this year, trading about $190 shy of a record set in April, with investors seeking safety in the metal amid heightened geopolitical and trade tensions. The rally has been supported by flows into bullion-backed exchange-traded funds, plus strong demand from central banks.
BRICS is a grouping that includes Brazil, China, Russia, South Africa and India. Over the weekend, its leaders agreed to continue talks on a cross-border payment system for trade and investment. Trump has previously threatened to slap 100% levies on BRICS if they ditch the dollar in bilateral trade.
Spot gold was down 0.8% at $3,309.31 an ounce at 11:05 a.m. in Singapore, after a gain of almost 2% last week. The Bloomberg Dollar Spot Index added 0.1%, dulling bullion’s allure. Silver, palladium and platinum all declined.