Gold Slips as Strong Dollar and Upbeat US Data Weigh, Palladium Surges

Saturday, September 27th 2025

Gold prices retreated slightly on Thursday, pressured by a stronger US dollar and surprisingly solid economic data from the United States, while investors remained cautious ahead of looming tariff deadlines that could rattle global markets.

By 1:55 p.m. EDT (1755 GMT), spot gold was down 0.3% at $3,337.43 per ounce, after earlier dipping to an intraday low of $3,309.59. US gold futures followed suit, settling 0.4% lower at $3,345.30.

Dollar Strength and Data Dampens Gold’s Appeal

The US dollar climbed 0.3% on the day, supported by fresh economic indicators, which in turn made gold—priced in dollars—less attractive for investors holding other currencies. Benchmark Treasury yields also firmed, adding further headwinds for the non-yielding precious metal.

Bob Haberkorn, senior market strategist at RJO Futures, explained:
“The dollar firmed up after better-than-expected retail sales and jobless claims data, and higher yields have taken some shine off the gold market today.”

US jobless claims dropped last week, signaling resilience in the labor market. Meanwhile, retail sales rose 0.6% in June, beating forecasts—although analysts noted some of that gain may stem from tariff-related price increases.

Fed Governor Adriana Kugler also struck a hawkish tone, saying it would be premature for the central bank to consider cutting interest rates anytime soon, especially as inflationary effects of tariffs continue to ripple through prices.

Tariff Deadline Looms as Uncertainty Lingers

Geopolitical and trade tensions remain in focus, offering some underlying support to gold as a hedge against uncertainty. Japan’s chief trade negotiator met Thursday with the US Commerce Secretary in an effort to avert a planned 25% US tariff on Japanese goods set to take effect August 1 unless a deal is reached.

Market analyst Fawad Razaq of City Index and FOREX.com commented:
“If President Trump escalates trade tensions further, we could see gold challenge—and possibly surpass—its previous record highs as investors flock to safety.”

Swiss Gold Flows Reflect Shifting Market Dynamics

Elsewhere, Swiss customs data revealed a 44% jump in gold exports in June, as bullion moved from US vaults back to the UK via Swiss refineries. The data reflects ongoing shifts in investor demand and storage preferences amid global uncertainty.