Safe-haven gold slips as trade optimism lifts risk appetite

Gold prices fell for a second straight session on Thursday, as signs of easing global trade tensions dampened demand for safe-haven assets.

Spot gold was down 0.5% at USD 3,370.69 per ounce, by 01:45 p.m. ET (1745 GMT). US gold futures settled 0.7% lower at USD 3,373.5.

The market is optimistic about trade deals — first with the US and Japan, and now possibly the EU, said Aakash Doshi of State Street Investment Management, adding that strong equities and low volatility have weighed on gold’s upside.

The US and European Union were making progress toward a trade deal that may include a 15% baseline US tariff on EU goods, with potential exemptions. The move comes shortly after Washington unveiled a separate agreement with Japan.

Meanwhile, US President Donald Trump’s surprise move to visit the Federal Reserve later in the day added a layer of uncertainty to the policy outlook. It comes amid Trump’s repeated criticism of Fed Chair Jerome Powell for not cutting rates more aggressively.

“Any potential interference with Fed independence is supportive for gold over the medium to long term,” Doshi said.

The Fed is widely expected to leave rates unchanged at its July 29–30 meeting, but markets continue to price in a potential rate cut in September.

A safe-haven asset during times of economic uncertainties, gold also tends to do well in a low-interest rate environment.

On the data front, US jobless claims unexpectedly fell last week, signalling a steady labour market despite sluggish hiring making it harder for the unemployed to find work.

Spot silver slipped 0.7% to USD 39.02 per ounce, palladium dropped 3.5% to USD 1,234 and platinum lost 0.5% to USD 1,405.15.

(Reporting by Sherin Elizabeth Varghese in Bengaluru; Additional reporting by Sarah Qureshi in Bengaluru; Editing by Susan Fenton and Shailesh Kuber)