24.07.202501:57:38UTC+00Gold Holds Drop on Trade Optimism

Gold prices lingered just below $3,390 per ounce on Thursday, sustaining losses exceeding 1% from the previous day. This decline is attributed to growing optimism about potential trade agreements involving the United States and its major partners, which has dampened gold’s appeal as a safe-haven asset. Notably, the European Union is progressing towards a trade pact with the US that would institute a comprehensive 15% tariff on EU imports into the US, which is intended to avert a more severe 30% levy previously set to commence on August 1. This proposed tariff, which might also extend to automobiles, aims to replicate the foundations of a comparable US-Japan agreement. Nevertheless, cautious sentiment persists due to the looming threats of tariffs ranging from 15% to 50% on nations like South Korea and India, which remain in the midst of negotiations. Investors are also seeking clarity on discussions with China, as US Treasury Secretary Bessent is scheduled to engage with Chinese officials in the coming week. Meanwhile, attention is focused on the forthcoming Federal Reserve meeting next week, where interest rates are expected to be maintained, with potential reductions projected for October.