Gold falls awaiting tariff news

Gold prices fell on Tuesday as traders awaited tariff updates, while an inflation report showed a widely expected rise in U.S. consumer prices last month.

Spot gold fell 0.4% to $3,329.11 an ounce, while U.S. futures fell 0.7% to $3,336.90.

The dollar rose 0.5%, making gold more expensive for buyers holding other currencies.

"I think the market remains focused on tariffs, which is keeping gold under pressure. I remain bullish on gold, even though we're within the range it's been in since mid-May," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Over the weekend, US President Donald Trump threatened to impose higher tariffs, including 30% on imports from the European Union and Mexico.

Data released Tuesday showed the U.S. consumer price index rose 0.3% in June, in line with expectations, after rising 0.1% in May. It was the largest increase since January.

"Honestly, gold should be more buoyant. This seems to reinforce the view that we need a new engine to get gold back above $3,400," said Tai Wong, an independent metals trader.

Investors await Wednesday's US producer price index data. Gold, a safe haven asset in times of economic and geopolitical uncertainty, tends to thrive in low-interest-rate environments, as it offers no yield.

Among other metals, spot silver fell 1.2% to $37.69 an ounce, after hitting its highest level since September 2011 on Monday. Platinum fell 0.2% to $1,361.46, while palladium gained nearly 1% to $1,204.53.

Copper on the rise

Copper prices edged up slightly on Tuesday, boosted by strong industrial production data from China, the largest consumer of the metal, which offset rising stocks at London Metal Exchange (LME)-licensed warehouses and a stronger dollar.

Three-month copper on the LME rose 0.2% to $9,640 a metric ton.

Copper, used in energy and construction, is down 2.4% so far in July, having retreated from a three-month high of $10,020 per tonne hit earlier this month.

We could see a drop to around $9,585 in the short term, said Dan Smith, managing director of Commodity Market Analytics.