Gold prices slipped slightly during Asian trading on Wednesday, retreating after recent strong gains as a U.S.-Japan trade deal lifted investor risk appetite, reducing demand for safe-haven assets like gold.
Despite the dip, gold remained firmly higher for the week, trading less than $100 below its record high from April, as uncertainty surrounding U.S. President Donald Trump’s upcoming tariffs—set to take effect on August 1—continued to support caution in the markets.
Anticipation of next week’s Federal Reserve meeting also kept demand for gold elevated, while weighing on the U.S. dollar, which had been gaining over the past two weeks. Most metal prices stayed within narrow ranges during Wednesday’s session.
As of 01:20 ET (05:20 GMT), spot gold fell 0.3% to $3,421.15 an ounce, and gold futures slipped 0.3% to $3,434.75 per ounce.
Safe-Haven Demand Eases After U.S.-Japan Deal
Gold and other traditional safe-haven assets declined following President Trump’s announcement of a trade deal with Japan that will include a 15% tariff—lower than the previously threatened 25% rate. The agreement also offered relief on Japanese car exports, helping lift Japanese stock markets to one-year highs.
However, U.S. tariffs on Japanese steel and aluminum exports will remain at 50%, and optimism over the trade deal was tempered by political uncertainty in Japan, as speculation grew that Prime Minister Shigeru Ishiba may resign following his party’s defeat in the upper house elections.
Gold and Metals Rally This Week on Trade and Fed Anxiety
Even with Wednesday’s modest decline, gold was up 2.2% for the week, driven by ongoing trade tensions and uncertainty ahead of the Federal Reserve’s policy decision.
Gold prices hovered close to the $3,500 per ounce record high reached in April.
Other precious metals also made gains this week. Spot platinum and silver were up between 1% and 3%, though both saw slight pullbacks on Wednesday.
In industrial metals, benchmark copper futures on the London Metal Exchange fell 0.1% to $9,907.75 per ton, while COMEX copper futures rose 0.3% to $5.7855 per pound.
While the U.S.-Japan trade agreement signals progress in trade diplomacy, market sentiment remained tense due to a looming trade confrontation with the European Union. The EU is reportedly preparing retaliatory tariffs, responding to U.S. demands for steeper duties than Brussels is willing to accept.
Metal markets found some support from a weaker U.S. dollar, as investors grow cautious ahead of the Fed’s upcoming decision. The central bank is widely expected to keep interest rates steady, despite mounting pressure from Washington to ease monetary policy.
