US futures lower over tariff deadline uncertainty and Tesla selloff, gold and silver prices steady

Gold and silver prices remain resilient, supported by safe-haven demand amid trade concerns and a weakening dollar index. 

US index futures are lower following the White House announcement that new trade tariffs shall come into effect from August 1, 2025, rather than July 9, as was previously anticipated, thus adding to market uncertainty.

US stock futures experienced a slump at the start of the week, with data showing Dow Jones Industrial Average futures declined by 53 points, or 0.1 percent, while S&P 500 futures and Nasdaq-100 futures fell by 0.4% and 0.5% respectively, a short while ago.

Wall Street is also weighed down by weakness in Tesla shares that are sharply lower after CEO Elon Musk said he is launching his own political party, worrying investors over his political involvement.

The announcement from US Commerce Secretary Howard Lutnick, alongside President Donald Trump, clarified that tariffs initially set to resume on July 9 will now take effect on August 1, allowing more time for trade negotiations. Treasury Secretary Scott Bessent further said that tariff rates would revert to April 2 levels if no trade deals are reached by the deadline.

This delay has sparked mixed sentiments, with some investors reassured by the extended timeline, while the broader market remains cautious due to President Trump’s additional threat of a 10 percent tariff on countries aligning with the BRICS group’s 'anti-American policies'.

The BRICS summit, held in Rio de Janeiro on July 6 to 7, has drawn attention for its push toward alternative payment systems, potentially challenging the US dollar’s dominance. This geopolitical tension, combined with the looming tariff deadline, has heightened market volatility expectations.

Gold and Silver prices

Despite the upbeat US non-farm payroll data released last week, which reported a stronger-than-expected 147,000 job additions and a drop in the unemployment rate to 4.1%, gold and silver prices have held firm. On Friday, gold August futures settled at $3,346.50 per troy ounce, up 0.11 percent, and silver September futures closed at $37.135 per troy ounce, gaining 0.14 percent. In domestic Indian markets, gold August futures settled at Rs 96,990 per 10 grams (up 0.21 percent), and silver September futures reached Rs 1,08,429 per kilogram (up 0.18 percent).

The resilience in precious metals is driven by safe-haven buying amid concerns over rising US debt and fiscal deficits, fueled by proposed tax cuts and a dollar index at a 3.5-year low. Additionally, US 10-year bond yields below 4.30 percent have supported gold and silver prices. Analysts suggest that gold could maintain support at $3,327 to 3,309 per troy ounce, with resistance at $3,366 to 3,384, while silver may hold support at $36.80 to 36.55, with resistance at $37.40 to 37.70. In Indian markets, gold support lies at Rs 96,650 to 96,300, with resistance at Rs 97,400 to 97,770, and silver support is at Rs 1,07,700 to 1,07,000, with resistance at Rs 1,09,200 to 1,10,000.

The extension of the tariff deadline to August 1 provides a temporary reprieve, but the ongoing BRICS summit and Trump’s tariff threats continue to weigh on investor sentiment. The S&P 500 and Nasdaq Composite recently hit record highs, driven by optimism that the Trump administration might avoid the harshest tariffs. However, the potential for trade disruptions and retaliatory measures from BRICS nations could introduce volatility, especially as earnings season approaches. Companies that demonstrate resilience against tariff-related challenges may outperform, but markets remain sensitive to trade policy developments.

Gold and silver are expected to remain volatile but supported by safe-haven demand and a weaker dollar. Investors should monitor tariff-related headlines and the Federal Reserve’s June meeting minutes, due Wednesday, for insights into interest rate expectations, which could further influence precious metal prices and equity markets.

Analysts suggest buying silver around Rs 1,07,700 with a stop loss at Rs 1,06,650, targeting Rs 1,09,200 to 1,10,000, given its current support levels and potential for upside amid global uncertainties.