“Gold cheapens amid strengthening dollar and growing trade optimismThe price on the spot gold market decreased by 0.5% to $3350.08 per ounce. The strengthening of the US dollar and optimism regarding trade negotiations between the US and the EU are putting pressure on gold prices.
”, — write: unn.ua
DetailsThe spot gold price fell by 0.5% to $3350.08 per ounce as of 08:20 GMT (11:20 Kyiv time). US gold futures fell by 0.6% to $3351.70.
The US dollar index rebounded from a more than two-week low, making gold more expensive for overseas buyers, while the yield on 10-year US Treasury bonds rose.
According to Ricardo Evangelista, a senior analyst at the brokerage firm ActivTrades, gold is under pressure from increased risk appetite, driven by optimism about potential tariff negotiations, and higher-than-expected unemployment claims data, which supports the view that the US Federal Reserve is unlikely to cut rates.
“The element of uncertainty still remains… with strong support around $3300, I see potential for gold prices to rise in the event of new outbreaks of volatility,” he said.
On Thursday, the European Commission said that reaching a trade agreement with the United States through negotiations was entirely achievable, while EU members voted to approve retaliatory tariffs on 93 billion euros ($109 billion) worth of American goods if negotiations fail.
Data showed that the number of Americans filing new claims for unemployment benefits fell to a three-month low last week, indicating a stable labor market.
Meanwhile, President Donald Trump pressured Fed Chairman Jerome Powell to cut interest rates during a tense visit to the US central bank on Thursday, less than a week before the next interest rate-setting meeting, at which policymakers are expected to keep interest rates stable, the publication writes.
Markets are pricing in a potential rate cut in September.
Gold typically performs well during periods of uncertainty and low interest rates.
Spot silver fell 0.5% to $38.90 an ounce, but appeared to be showing a weekly gain of about 1.9%. Platinum lost 0.6% to $1400.02, and palladium lost 0.7% to $1219.20.
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