Gold Prices Decline as Trade Tensions Ease and Dollar Weakens

Gold prices witnessed a decline during Thursday's trading on July 24, influenced by a decrease in demand for safe-haven assets as global trade tensions eased, despite the support provided by the weakening of the dollar against major currencies.

According to data, the price of gold in the spot market decreased by 0.2% to reach $3381.19 per ounce, after a 1.3% decline during Wednesday's session. Gold futures also dropped by 0.3%, recording $3384.70 per ounce.

The dollar index showed a decline to its lowest level in over two weeks, making dollar-denominated gold more attractive to holders of other currencies. However, this factor could not offset the impact of reduced demand for the yellow metal.

This decline comes amidst positive signs in trade negotiations, as U.S. President Donald Trump reached an agreement with Japan to reduce tariffs on cars and exempt Tokyo from additional duties on some goods, in exchange for a package of investments and loans worth up to $550 billion.

Officials in the European Commission also indicated that the European Union and the United States are nearing a trade deal that includes imposing tariffs of 15% on some European products while exempting other goods.

These developments have boosted risk appetite in global markets, amid optimism about the possibility of achieving more trade agreements.

Investors are awaiting today's release of weekly jobless claims data, in addition to the Composite Purchasing Managers' Index by "Standard and Poor's Global," to assess the strength of economic activity ahead of the Federal Reserve's meeting next week.

Forecasts from the CME Group's "FedWatch" tool suggest that markets expect interest rates to remain unchanged in the upcoming meeting, with a 63% chance of a cut in September.

As for other precious metals, silver maintained its stability at $39.28 per ounce, while platinum declined by 0.1% to $1410.47, and palladium dropped by 0.3% to $1273.98.