FX.co ★ Gold Dips on US Trade Deals

Gold prices declined to approximately $3,420 per ounce on Wednesday, ending a three-day uptrend and retracting from a five-week peak. This downturn was influenced by a series of trade agreements that weakened the precious metal's role as a safe-haven asset. President Trump announced a substantial trade agreement with Japan, which includes the implementation of 15% reciprocal tariffs—lower than the initially threatened 25%. In return, Japan has agreed to open its market to a greater volume of American goods. This pact follows previous agreements with the Philippines and Indonesia, raising optimism for further deals ahead of the August 1 deadline. Despite this, caution remains due to stalled negotiations with several key partners. The European Union continues to pursue a trade arrangement with the United States but is also preparing retaliatory measures in response to Trump's stringent negotiation tactics, which heighten the risk of a no-deal scenario. Additionally, focus shifts to the upcoming Federal Reserve meeting next week, where it is expected that interest rates will remain unchanged, though markets are anticipating potential rate cuts in October.