09:11 AM EDT, 07/23/2025 (MT Newswires) -- Gold futures fell off a five-week high early on Wednesday as the dollar rose after the United States reached its first tariff deal with a major trading partner.

Gold for August delivery was last seen down US$8.90 to US$3,434.80 per ounce, after rising to the highest since the metal's June 13 record high of US$3,452.80 on Tuesday.

The drop comes after the Trump Administration said it reached a trade agreement with Japan that sees Tokyo's exports to the United States taxed at a 15% rate, including autos. Japan also promised to invest US$550 million in the United States, becoming the first country to reach a deal ahead of Donald Trump's Aug.1 deadline for trade deals.

"The deal, as reported, involves imposing a tariff of "only" 15 percent on imports from Japan, mainly in return for a promise by the Japanese government to invest $550 billion in the United States. It appears that Japan will create a sovereign wealth fund for that purpose, and that Trump will have a say in how it invests," economist Paul Krugman said in a Substack post.

The dollar moved up following the agreement, with the ICE dollar index last seen up 0.08 points to 97.47. Treasury yields edged higher, with the U.S. two-year note last seen paying 3.855%, up 0.03 basis points, while the yield on the 10-year note was up 1.6 points to 4.367%.