Gold prices remained mostly flat during Wednesday’s Asian trading session as investors navigated ongoing uncertainty over U.S. trade relations and awaited the Federal Reserve’s policy decision expected later in the day.
Spot gold dipped slightly by 0.1% to $3,323.66 per ounce, while gold futures also edged down 0.1% to $3,378.62 per ounce as of 02:18 ET (06:18 GMT).
The metal had recorded modest gains in the previous session, buoyed by concerns around trade tensions ahead of the August 1 tariff deadline set by President Donald Trump.
However, gold has softened over recent weeks, as progress in U.S. trade negotiations has dampened demand for traditional safe-haven assets.
Gold pressured by trade developments and a robust dollar
Last weekend, a U.S.-EU trade framework was announced, reducing tariffs on most European goods to 15%, down from the originally threatened 30%. This easing of trade tensions has lessened fears of an intensifying trade war but has simultaneously strengthened the U.S. dollar.
A firmer dollar tends to weigh on gold prices by increasing the metal’s cost for buyers using other currencies. The Dollar Index maintained its strength on Wednesday following notable gains earlier this week.
Despite some trade progress, markets remain cautious ahead of the August 1 tariff deadline. This uncertainty limits broad market optimism but continues to support gold’s appeal as a haven, albeit mildly.
Analysts noted that trade deals linked to tariffs usually favor the dollar, reducing gold’s attractiveness as risk appetite improves.
Precious metals dip ahead of Fed decision
Investor attention is focused on the conclusion of the Federal Reserve’s two-day policy meeting on Wednesday, where interest rates are expected to be held steady within the 4.25%–4.50% range.
Market participants will closely examine the Fed’s commentary for clues about possible rate changes later this year, with some speculating a rate cut in September.
In addition, a wave of U.S. economic data is scheduled for release this week, including PCE inflation figures and the monthly jobs report, which will further influence market sentiment.
Meanwhile, platinum futures declined 0.3% to $1,415.05 per ounce, and silver futures fell 0.4% to $38.15 an ounce.
Copper prices also retreated, with benchmark copper futures on the London Metal Exchange dropping 0.3% to $9,781.45 per ton, and U.S. copper futures down 0.5% to $5.64 per pound.
This week, U.S. copper prices were hit by sharp declines after Chile’s finance minister announced the country would seek an exemption from the planned U.S. tariff on copper imports.
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