Gold Prices Slide as Trade Tensions Ease and Risk Appetite Grows
🔍 Key Takeaways
- Gold prices dropped 0.6% to $3,362.59/oz, extending decline after a 1.3% fall
- U.S. gold futures fell 0.9% to $3,367.30/oz
- Easing U.S.–Japan trade deal uplifts global markets and dims gold demand
- EU–U.S. deal discussions with baseline 15% tariff raise optimism
- Spot metals also down: Silver –0.7%, Palladium –2%, Platinum –2.5%
Gold Price Slide As Trade Optimism Takes Hold
Gold extended losses on Thursday, dropping 0.6% to $3,362.59 per ounce by 09:30 GMT, after shedding 1.3% in the previous session. Meanwhile, U.S. gold futures slid 0.9% to $3,367.30.
This drop reflects growing investor confidence following the U.S.–Japan trade deal and promising reports of a potential EU–U.S. agreement with a 15% tariff baseline, diminishing safe-haven demand.
“Gold is down this morning due to the positive news flow around global trade… reducing downside risks for global growth and supporting risk-on mood,” commented Carsten Menke of Julius Baer.
📈 Risk-On Rally Hits Precious Metals
Improving trade sentiment propelled stock markets toward record highs, diverting funds away from gold. At the same time, central bank buying remains steady but weaker than earlier in the year.
Menke believes gold still has long-term upside:
“We still expect gold to move higher in the longer term.”
Gold’s safe-haven appeal remains intact amid rate uncertainty and geopolitical risks. The market now looks to upcoming Fed (July 29–30) and ECB rate decisions, expected to maintain current rates.
📊 Precious Metals Market Overview
| Metal | Price Change | Current Level |
|---|---|---|
| Gold (Spot) | –0.6% | $3,362.59/oz |
| Gold (Futures) | –0.9% | $3,367.30/oz |
| Silver (Spot) | –0.7% | $39.02/oz |
| Palladium | –2.0% | $1,252.70/oz |
| Platinum | –2.5% | $1,376.45/oz |
🏦 Central Bank Policy Watch
- 🇺🇸 U.S. Fed meets July 29–30; rate cuts expected in September
- 🇪🇺 ECB also poised to hold rates steady
- President Trump’s planned visit to the Fed adds political tone ahead of the meeting
Read More: Tokenized Gold: Why Investors Are Choosing Gold DAO Over ETFs
💬 Final Thoughts
With improving trade relations and steady central bank signals, gold’s short-term safe-haven appeal is weakened but its long-term fundamentals remain intact. Metal investors and traders should watch global trade news and Fed/ECB actions for the next shift.
📢 What’s your view: will gold rebound or continue sliding? Share your take below!
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