Gold Declines as Risk Appetite Improves Despite Ongoing Pressure on the Dollar
Gold prices saw a slight decline during Wednesday's trading session, influenced by increased investor risk appetite following the announcement of a trade agreement between the United States and Japan. The deal came ahead of the scheduled deadline for imposing new tariffs. Despite the decline, weakness in the U.S. dollar and falling bond yields helped limit losses.
Spot gold fell by 0.2% to $3,423.44 per ounce , after hitting its highest level since June 16 earlier in the session. U.S. gold futures also dropped by 0.2% to $3,437.70 per ounce.
The new trade agreement between Washington and Tokyo includes a 15% tariff on certain U.S. imports from Japan, easing concerns over an escalation in trade tensions.
Meanwhile, markets are turning their attention to an upcoming meeting between U.S. and Chinese officials in Stockholm next week. The meeting is expected to discuss extending the trade negotiation deadline to August 12—a development that could boost market optimism and support riskier assets.
Despite the current dip, technical forecasts continue to suggest the possibility of gold returning to the $3,500 per ounce level in the near term, particularly if pressure on the U.S. dollar persists.
As for other precious metals, prices fell across the board. Silver slipped 0.3% to $39.15 per ounce, platinum declined by the same margin to $1,437.83, and palladium dropped 0.8% to $1,264.96 per ounce.
