Gold Falls to $3,330—Are Investors Turning Away from Safety?
Gold prices slipped to around $3,330 per ounce on Wednesday, retracing over 1% of the gains made earlier this week, as easing geopolitical tensions weakened demand for safe-haven assets. The decline came after President Donald Trump announced that Israel had agreed to a 60-day ceasefire in Gaza, urging Hamas to accept the deal before conditions deteriorate further. The news brought a momentary sense of relief to global markets, dampening gold’s recent momentum.
Despite the drop, losses were cushioned by a weaker US dollar, which remains under pressure due to ongoing concerns over fiscal stability and trade uncertainty. The US Senate passed Trump’s massive tax-and-spending bill, which now heads back to the House of Representatives. The bill is projected to widen the US deficit by $3.3 trillion over the next decade. In a separate development, Trump escalated trade tensions by threatening to impose a 35% tariff on Japanese imports, citing stalled negotiations.
On the monetary front, Federal Reserve Chair Jerome Powell reiterated a cautious stance on rate cuts but did not rule out the possibility of action later this month. Meanwhile, Treasury Secretary Scott Bessent signaled his expectation that rate cuts may come by September. Investors are now turning their attention to this week’s nonfarm payrolls report, due Thursday, which could provide critical signals about the Fed’s next policy move.
Source: Newsmaker.id
