FX.co ★ Gold Falls on Trade Optimism

On Thursday, the price of gold fell to approximately $3,340 per ounce, relinquishing some gains made earlier as positive trade news diminished the metal’s allure as a safe haven. President Trump revealed a trade pact with Vietnam, under which certain tariffs on Vietnamese goods would be lifted, enhancing market access for American products in Vietnam. This development also sparked optimism for future bilateral trade agreements. Nonetheless, the downturn in gold prices was cushioned by a weakened U.S. dollar, weighed down by fiscal worries and the anticipation of further monetary easing by the Federal Reserve. Data from ADP indicated an unexpected decline in private-sector payrolls for June, marking the first drop in over two years and highlighting ongoing labor market concerns, which bolster the argument for continued accommodative monetary policy. Additionally, geopolitical tensions were slightly elevated as Iran ceased cooperating with the UN nuclear oversight body.