Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Gold prices remained largely stable on Wednesday as investors weighed ongoing U.S. trade uncertainty and awaited the Federal Reserve’s policy decision later in the day.
- Spot Gold edged down by 0.1% to $3,323.66 an ounce.
- Gold Futures also ticked 0.1% lower, trading at $3,378.62 per ounce by 02:18 ET (06:18 GMT).
Gold had seen modest gains in the previous session, driven by heightened trade uncertainty ahead of the August 1 tariff deadline set by President Donald Trump. However, the metal has been under pressure recently due to progress in U.S. trade deals, which has eroded demand for gold as a safe-haven asset.
Gold Faces Pressure from U.S. Trade Deal Progress and Strong Dollar
A U.S.–EU framework trade agreement, announced last weekend, imposed a reduced 15% tariff on most European goods, down from the initially threatened 30%. While this deal eased fears of a trade war escalation, it also strengthened the U.S. dollar. The stronger dollar made gold more expensive for overseas buyers, reducing its demand.
- The US Dollar Index remained strong on Wednesday after significant gains earlier in the week.
- Analysts noted that tariff-driven trade deals are typically dollar-friendly, which lowers the appeal of gold as risk appetite increases.
Despite the recent trade deal progress, the August 1 tariff deadline remains a looming concern, which has kept safe-haven demand for gold moderately supported, even as the risk-on sentiment continues to grow.
Investors Await Federal Reserve’s Decision
The focus is now on the Federal Reserve’s two-day policy meeting set to conclude on Wednesday. The central bank is expected to maintain interest rates in the 4.25%–4.50% range.
- Traders are eagerly awaiting commentary from the Fed for potential rate cuts later this year. Some investors anticipate a cut in September, which could influence the market sentiment around gold.
Other key U.S. economic data this week includes PCE inflation figures and the monthly jobs report, which will be closely monitored for clues on economic growth and inflation trends.
Other Precious Metals and Industrial Commodities
- Platinum Futures fell 0.3% to $1,415.05/oz.
- Silver Futures declined 0.4% to $38.15 per ounce.
- Copper Futures on the London Metal Exchange dropped 0.3% to $9,781.45 per ton, while U.S. Copper Futures were down 0.5% at $5.64 a pound.
U.S. copper prices saw sharp declines this week after Chile’s finance minister announced plans to seek an exemption for U.S. tariffs on the metal. This uncertainty surrounding trade tariffs continues to weigh on copper prices.
With key economic data and the Federal Reserve’s decision ahead, gold and other precious metals will likely remain under pressure from a stronger dollar and rising risk sentiment. However, the uncertainty around global trade, particularly the tariff deadline, will continue to provide some support to gold prices.
