Gold/USD drops 1.2% to $2,380 on tariff concerns, USD strength

Gold prices have declined 1.2% to $2,380 per ounce as tariff discussions boost dollar strength and overshadow geopolitical risk factors. The precious metal faces headwinds from rising US Treasury yields and expectations of potential trade policy changes, which have increased demand for the greenback. Despite ongoing geopolitical tensions that typically support gold as a safe-haven asset, traders are prioritizing the implications of possible tariff implementations on global trade flows. The dollar index has gained 0.4% on the news, directly pressuring gold prices given their inverse relationship. Technical indicators show gold breaking below its 50-day moving average at $2,395, with next support at $2,360. Resistance now stands at $2,400, which must be reclaimed for any bullish momentum to resume. The metal's failure to benefit from geopolitical risks signals strong dollar dominance in current market conditions.