FX.co ★ Gold Holds Decline

Gold prices steadied at approximately $3,360 per ounce on Friday after experiencing two consecutive sessions of declines, driven by alleviated trade tensions and an increased inclination toward riskier investments. Investor focus remains on the developments in tariff negotiations, as the US and the EU are reportedly advancing towards an accord, following Washington’s recent separate agreement with Japan. In economic news, the streak of falling US jobless claims extended to a sixth week, marking the longest series of declines since 2022. This trend underscores the robustness of the labor market, bolstering expectations that the Federal Reserve will maintain its interest rates in the upcoming session. Currently, the market anticipates fewer than two rate cuts within the year, with the first occurring in October. Concurrently, attention is drawn to the renewed discord between President Trump and Federal Reserve Chair Powell, as disagreements over the central bank's renovation expenses arise. While Trump reiterated his demand for lower rates, he indicated that the renovation disputes were insufficient grounds for dismissing Powell. Despite the setbacks experienced mid-week, gold is still on course for a 0.6% gain for the week.