Gold prices steady ahead of Fed decision, Trump’s tariff deadline
Gold prices were largely unchanged in Asian trade on Wednesday as investors weighed persistent U.S. trade uncertainty and awaited the Federal Reserve’s policy decision later in the day, News.Az reports citing Reuters.
Spot Gold edged down 0.1% to $3,323.66 an ounce, while Gold Futures also ticked 0.1% lower to $3,378.62/oz by 02:18 ET (06:18 GMT).
Bullion saw modest gains in the previous session, supported by trade uncertainty ahead of the August 1 tariff deadline set by President Donald Trump.
However, the commodity has fallen in the past few weeks as recent U.S. trade progress eroded demand for haven assets.
Gold under pressure from US trade deal progress, 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%.
The recent progress in U.S. trade deals with the European Union eased some fears of an escalated trade war, but it bolstered the U.S. dollar. This, in turn, weighed on gold by making it more costly for overseas buyers.
The US Dollar Index remained strong on Wednesday after sharp gains at the start of the week.
Markets remain on edge ahead of the August 1 tariff deadline. This looming timeline is limiting market optimism and keeping safe-haven demand for gold mildly supported despite trade progress.
Analysts pointed out that tariff-driven trade deals are typically dollar-friendly and lower the allure of gold amid rising risk appetite.
Metal markets fall ahead of Fed decision
Investors are focused on the Federal Reserve’s two-day policy meeting ending Wednesday. The central bank is anticipated to keep rates within the 4.25%–4.50% range.
Traders will scrutinise the accompanying commentary for hints on potential rate adjustments later this year, as some investors expect a cut in September
Market participants also await a flurry of U.S. economic data due later this week, including PCE inflation figures and, monthly jobs report, among others.
Platinum Futures fell 0.3% to $1,415.05/oz, while Silver Futures declined 0.4% to $38.15 per ounce.
Benchmark Copper Futures on the London Metal Exchange fell 0.3% to $9,781.45 a ton, while U.S. Copper Futures were down 0.5% at $5.64 a pound.
US copper prices saw sharp declines this week as Chile’s finance minister said the country will push for an exemption for a planned US tariff on the metal.
Similar news
