Gold is stable ahead of the Federal Open Market Committee decision
Gold prices settled near the levels of 3,325 dollars per ounce on Wednesday, trading near its lowest levels in three weeks, as demand for the precious metal as a safe haven declined thanks to the easing of global trade tensions.
Trade agreements ease the pressure on gold
The recent agreement between the United States and the European Union, which set tariffs at 15% on most European goods, helped to avoid a wider escalation in the trade war.
Washington is also continuing talks with its allies, such as Canada and South Korea, boosting investors ' hopes of containing trade disputes, which puts downward pressure on gold.
The United States and China are still discussing an extension of the tariff truce, which is due to expire in two weeks, making markets more cautious about any surprises that could re-escalate tensions.
Wait for the decision of the US Federal Reserve and its impact on the yellow metal
Investors attention is turning today to the decision of the Federal Open Market Committee (FOMC), scheduled to be announced on Wednesday evening.
The committee is widely expected to keep interest rates unchanged, but the focus will be on Fed Chairman Jerome Powell's press conference and whether or not he will hint at a possible rate cut in September.
Traders are also waiting for any signals about quantitative easing or a change in tone towards monetary policy, as any trend towards easing may support gold.
In addition, any sudden decline in economic data may strengthen the demand for the metal as a safe asset.
