Spot Gold pulled back from a 5-week peak of $3,439.03 on Thursday, as trade optimism dented demand for safe-haven metals.
Support from a softer dollar has been offset.
US President Trump announced this week a “massive” trade agreement with Japan, under which the US will impose a 15% reciprocal tariff and Japan will open its market to more US-originated goods.
At the same time, the EU and the US are moving closer to a deal that would impose 15% tariffs on European imports and waive levies on some items.
Also, US and Chinese officials will hold a meeting in Stockholm next week to discuss an extension to the August 1st deadline for securing a trade deal.
“Yesterday, gold prices were seen building up for the next bullish run until the news came out on trade front, triggering some profit-taking,” Brian Lan, managing director at GoldSilver Central, Singapore, was quoted as saying by Reuters.
“We’ve seen the dollar has also weakened quite a bit, and of course, this also supports gold. So, I think this is a small retracement at this moment. We are, in fact, still quite bullish on gold.”
The US Dollar Index hovered above a more than two-week low and was last up 0.03% to 97.237. A weaker dollar makes dollar-priced Gold more appealing to international investors holding other currencies.
Spot Gold was last down 0.62% on the day to trade at $3,366.55 per troy ounce.
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