Gold is falling, influenced by a series of trade deals
The price of gold witnessed some declines on Wednesday, reaching levels close to 3420 dollars per ounce, giving up part of its gains made over the past three days, which brought it to the highest level in five weeks.
The decline is driven by a wave of optimism in the markets following the announcement of a series of trade deals, which reduced the attractiveness of the yellow metal as a safe haven.
Trump's deal with Japan boosts hopes
US President Donald Trump announced on Tuesday evening a new trade agreement with Japan, which included reducing mutual tariffs between the two countries to 15% instead of the previously threatened 25%.
Japan will also open its markets to additional American products, along with huge Japanese investments in the United States amounting to 550 billion dollars.
The move is part of a series of agreements the US administration has recently concluded with countries such as the Philippines and Indonesia, boosting expectations that more deals could be reached before the August deadline.
Caution persists despite optimism
Despite these positive developments, markets remain cautious due to the stumbling of negotiations with key trading partners, most notably the European Union.
While the parties are trying to reach an agreement, the European Union is preparing possible retaliatory measures in the event of a failure of negotiations, especially in light of Trump's hard-line position, which increases the risks of not reaching a compromise.
Looking forward to the Federal Reserve
meeting Investors attention is also turning towards the Federal Reserve meeting scheduled for next week, where interest rates are expected to remain unchanged.
However, market expectations are moving towards a possible rate cut next October, which may subsequently affect the movement of gold and other safe assets.
