Gold Prices Stabilize After Sharp Losses.. Anticipation for the Impact of US Trade Decisions

Gold prices witnessed a noticeable stabilization during trading on Thursday, July 31, following significant losses on Wednesday, where they dropped to their lowest levels in a month, amidst a state of uncertainty caused by statements made by US President Donald Trump regarding the country's trade policy.

The stabilization came after a series of measures announced by Trump on Wednesday, including adjustments to the tariffs imposed on copper and Brazilian imports, in addition to canceling exemptions granted for small shipments coming from abroad. He also announced an agreement with South Korea to impose a 15% tariff on its imports, while negotiations are ongoing with India after imposing a 25% tariff on its goods starting from Friday.

In his comments on trade relations with China, Trump expressed optimism about reaching a fair agreement, saying: "We expect to reach a fair agreement," without providing further details on expectations or a timeline for the negotiations.

On the other hand, the US Federal Reserve decided to keep interest rates unchanged, while statements from its chairman, Jerome Powell, led to a decline in speculations about a possible interest rate cut in September. Gold is considered one of the assets that experience increased demand in periods of low interest rates, and it attracts investors as a safe haven in times of economic instability.

At the end of the session, gold futures settled at $3351 per ounce, amid close monitoring by traders of developments in global monetary and trade policies and their potential impacts on the markets.