On Tuesday, gold futures prices fell during the U.S. trading session on the New York Mercantile Exchange’s COMEX division. August delivery contracts dropped to $3,377.05 per troy ounce, reflecting a decline of 0.59% from the previous close. This downturn highlights the ongoing pressure on the precious metals market, primarily driven by the strengthening U.S. dollar.

Gold prices experienced a notable decline of almost 1% on Monday following a significant development in U.S. trade policy. Former U.S. President Donald Trump withdrew his earlier threat to impose a 50% tariff on European Union (EU) imports effective June 1. This policy reversal alleviated concerns about an escalating trade conflict between the U.S. and the EU, reducing demand for gold as a safe-haven asset amid geopolitical uncertainty.