FX.co ★ Gold Stays Close to 3-Week Low

On Wednesday, gold remained steady at approximately $1,320 per ounce, lingering near a three-week low as alleviated trade tensions diminished its allure as a safe-haven asset. The deal between the United States and the European Union, which introduced a 15% tariff on a majority of European goods, successfully prevented a more extensive trade dispute. As ongoing negotiations continue with Canada, South Korea, and other nations, investor sentiment is growing more optimistic that further trade escalations may be averted. Concurrently, discussions between the US and China persist in an effort to extend a tariff truce that is set to terminate in two weeks, with President Trump anticipated to make the crucial decision regarding any potential extension. Investors are keenly awaiting the Federal Open Market Committee's (FOMC) decision scheduled for today. Although it is widely anticipated that the Federal Reserve will maintain the current interest rates, the market's attention will be directed towards Chair Powell’s press conference for any indications of a possible interest rate reduction in September. Additionally, focus is shifting towards a series of significant US economic reports. This week has seen job openings marginally fall below expectations, while consumer confidence has experienced an uptick.