Gold Steadies After Trump’s Deal With Japan Eases Trade Concerns
Gold steadied after a three-day rally as US President Donald Trump’s deal with Japan allayed trade war concerns that have stoked demand for haven assets.
Bullion was little changed at around $3,430 an ounce after Trump said he would impose 15% levies on goods from Japan. The terms were better than most investors expected, following fraught negotiations.
With several countries still racing to secure agreements ahead of an Aug. 1 deadline, investors continue to seek clarity on progress with China in particular. US Treasury Secretary Scott Bessent said he’ll discuss a potential extension of the trade truce with the Asian powerhouse during talks in Stockholm next week.
Gold has climbed about 30% this year, as uncertainty around Trump’s aggressive attempts to reshape global trade and conflicts in Ukraine and the Middle East sparked a flight to safety. The precious metal has consolidated within a tight range over the past few months, though this week’s gains of about 2.5% have pushed prices roughly $70 short of April’s record high above $3,500 an ounce.
Spot gold was practically flat at $3,431.43 an ounce as of 10:52 a.m. in London. The Bloomberg Dollar Spot Index was also flat, after edging 0.4% lower in the previous session. Silver, platinum and palladium all inched higher.
Traders were also monitoring the future of the Federal Reserve. Bessent offered support for Fed Chair Jerome Powell, who has found himself in the line of Trump’s fire for holding interest rates steady while waiting to see if tariffs impact inflation. Monetary policy loosening tends to benefit the precious metal, which doesn’t pay interest.
Meanwhile, with few major US economic data releases due in the coming days and Fed speakers in a blackout period ahead of next week’s policy meeting, traders will be watching for signals from officials when they gather in Washington July 29-30.
Source : Bloomberg
