Gold Holds Drop on Trade Optimism
Gold hovered below $3,390 per ounce on Thursday, holding on to losses of over 1% from the previous session, as optimism over further trade deals between the US and key partners weighed on the metal’s safe-haven appeal.
The European Union is moving toward a trade agreement with Washington that would impose a broad 15% tariff on EU goods entering the US, avoiding a steeper 30% levy scheduled to take effect on August 1. The tariff, which could also apply to cars, would mirror the framework of a similar US-Japan deal.
However, some caution remained amid ongoing threats of 15% to 50% tariffs on countries such as South Korea and India, which are still negotiating deals. Traders also await clarity on talks with China, with Treasury Secretary Bessent scheduled to meet Chinese officials in the week ahead.
On the monetary policy front, markets are focused on next week’s Federal Reserve meeting, where rates are expected to be kept on hold, with potential cuts anticipated in October.
Source: Trading Economics
