Gold prices remained largely unchanged during Wednesday’s Asian trading session as investors balanced ongoing U.S. trade uncertainties with anticipation of the Federal Reserve’s upcoming policy announcement.
Spot gold slipped marginally by 0.1% to $3,323.66 an ounce, while gold futures fell by the same margin to $3,378.62 per ounce as of 02:18 ET (06:18 GMT).
The previous session saw modest gains for gold, driven by concerns over trade tensions ahead of the August 1 tariff deadline imposed by President Donald Trump.
However, in recent weeks, gold has softened amid progress in U.S. trade talks, which has lessened demand for the precious metal as a safe haven.
Trade Progress and a Strong Dollar Weigh on Gold
A recent U.S.–EU trade agreement reduced tariffs on most European goods from an initially proposed 30% to 15%, easing fears of an escalating trade conflict.
While this development calmed some market anxieties, it also boosted the U.S. dollar. A stronger dollar makes gold more expensive for holders of other currencies, putting downward pressure on prices.
The Dollar Index remained elevated on Wednesday, continuing gains made earlier in the week.
With the August 1 tariff deadline approaching, markets remain wary, capping broader optimism and providing moderate support for gold’s safe-haven status.
Analysts have noted, “tariff-driven trade deals generally support the dollar and reduce gold’s appeal when investors’ risk appetite grows.”
Precious Metals Retreat as Fed Meeting Nears
Attention now turns to the Federal Reserve’s two-day policy meeting, concluding Wednesday, where interest rates are expected to hold steady between 4.25% and 4.50%.
Investors will be scrutinizing Fed Chair Jerome Powell’s remarks for any indications of future rate moves, especially with some anticipating a possible cut in September.
Upcoming U.S. economic releases this week, including the PCE inflation report and the monthly jobs data, will also be key market drivers.
Meanwhile, platinum futures declined 0.3% to $1,415.05 per ounce and silver futures slipped 0.4% to $38.15 an ounce.
Copper prices declined as well, with London Metal Exchange copper futures falling 0.3% to $9,781.45 per ton and U.S. copper futures down 0.5% to $5.64 per pound.
Copper prices were pressured by comments from Chile’s finance minister, who said Chile will seek an exemption from the proposed U.S. copper tariffs.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.