Gold Slips 0.1% After Rebound From Tariff-Driven Drop

Gold prices recovered from earlier losses on Monday after Trump announced 25% tariffs on imports from Japan and South Korea starting August 1st, according to Reuters. The move prompted interest in safe-haven assets despite a strong U.S. dollar. Spot gold ended down just 0.1% after an initial 1% slide. The dollar index rose 0.4%, making gold more expensive for holders of other currencies. Major U.S. stock indexes dipped following the tariff news. Analysts noted ongoing safe-haven buying by central banks, including China's eighth consecutive month of gold purchases in June. Bank of America expects this trend to continue as central banks seek to reduce reliance on the dollar and hedge against volatility.