Is Gold’s Glitter Fading? Why $3,300 Might Just Be the Starting Line for a Surprising Market Twist
Easing trade tensions have dampened Gold’s safe-haven appeal, keeping gains in check. However, a softer US Dollar (USD) and a modest pullback in Treasury yields are offering some support. Still, overall risk-on sentiment in the markets is limiting upside momentum as traders brace for the Federal Reserve’s (Fed) monetary policy decision, due Wednesday at 18:00 GMT.
Gold came under pressure last week as improving risk appetite, driven by a series of trade deals, reduced demand for safe-haven assets. The recently announced US-EU deal, which imposes a 15% flat tariff on a wide array of European imports, has added to market optimism that global trade tensions may be cooling. Earlier, the United States (US) also reached a preliminary deal with Japan. Adding to the cautious optimism, negotiations are underway with Canada, South Korea and other trading partners, with hopes high that several more deals could be finalized before the August 1 deadline on Friday.
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