Gold Prices Fall Ahead Of US-China Trade Deal Announcement
Gold (XAU/USD) extended the previous day’s correction and fell nearly 1% to $3,333 at the time of writing on Thursday (08/05) as risk sentiment improved, with US President Donald Trump expected to announce a trade agreement with the United Kingdom (UK) at a press conference at 14:00 GMT in Washington, according to people familiar with the matter. Meanwhile, the UK government has confirmed to Bloomberg and the Financial Times that a deal will be announced. Details of the trade deal are yet to be confirmed.
Additional drivers overnight were the Federal Reserve’s (Fed) interest rate decision and Fed Chair Jerome Powell’s remarks. The main takeaway from Powell’s remarks was that the US economy is showing signs of resilience for now. However, Powell said the real impact of tariffs and rising uncertainty will come later this year. The central bank kept interest rates unchanged in the range of 4.25%-4.50%, confirming market assumptions, as seen in the Fedwatch Tool, that a rate cut is not expected until the summer.
Source: FXStreet
