FX.co ★ Gold Edges Down

Gold prices fell to approximately $3,330 per ounce on Tuesday as optimism surrounding potential trade agreements appeared to lessen the demand for the precious metal, traditionally seen as a safe-haven asset. This development follows President Donald Trump's announcement on Monday where he shared letters via Truth Social, directed at the leaders of 14 nations, threatening tariffs ranging from 25% to 40%. Nonetheless, market anxiety was somewhat alleviated when Trump issued an executive order to postpone the enforcement of these tariffs, along with comprehensive "reciprocal" tariffs on most trading partners, extending the deadline from July 9 to August 1. This extension provides countries with nearly an additional four weeks to negotiate resolutions. Further pressuring gold prices was a strong US jobs report released last week, which eased fears of an economic slowdown in the United States and reduced the likelihood of a Federal Reserve interest rate cut in July. Investors are now looking forward to the release of the June FOMC meeting minutes on Wednesday, which may offer further insight into the Federal Reserve's future policy direction.