Gold keeps falling thanks to trade optimism
Gold prices fell on Thursday to around 3,370 dollars per ounce, maintaining their decline of more than 1% in the previous session, as the demand for the precious metal as a safe haven declined in light of the improving global trade landscape.
Business optimism reduces the attractiveness of gold
The positive news about the trade negotiations between the United States and its main partners negatively affected gold prices, as the European Union is moving towards concluding an agreement with Washington under which it will impose 15% tariffs on its exports to the American market, instead of the high duties of 30% scheduled to be applied starting from the first of August.
The agreement is in line with the previously agreed framework between the United States and Japan, boosting hopes of containing global trade tensions.
However, uncertainty still surrounds the fate of negotiations with other countries such as South Korea and India, as they have not ruled out imposing tariffs of up to 50% in the event of a failure of negotiations.
Keep an eye on the developments of negotiations with China
Investors are eagerly awaiting the upcoming talks between the United States and China, where US Treasury Secretary Steven Mnuchin is scheduled to meet with Chinese officials next week, in an attempt to find solutions to the ongoing trade dispute between the world's two largest economies.
Expectations of the monetary policy of the Federal Reserve
On the monetary side, traders ' eyes are turning towards the Federal Reserve meeting scheduled for next week, where interest rates are expected to be kept unchanged, with growing expectations of their reduction in October.
Any move to cut interest rates later may affect the support of demand for gold as an alternative investment asset.
