Gold Prices Decline as Trade Concerns Ease and Dollar Rises
Gold prices witnessed a decline during trading on Tuesday, July 29, affected by the easing of global trade tensions and the rise of the US dollar, as investors await new guidance from the Federal Reserve on the future of interest rates.
According to data, the price of gold in the spot market fell by 0.2% to reach $3308.39 per ounce at 00:24 GMT, after hitting its lowest level since July 9 in the previous session. Furthermore, gold futures in the United States dropped by 0.1% to $3306.20 per ounce.
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This decline coincided with international efforts to contain trade conflicts, as top economic officials from the United States and China held a meeting in Stockholm on Monday, lasting for more than five hours, to discuss solutions to the long-standing disputes between the two countries, with the possibility of extending the trade truce for an additional three months.
In a related development, Washington and the European Union reached a framework trade agreement on Sunday, including the imposition of a 15% tariff on most European goods, which helped avoid a widespread trade escalation between the two parties, who together represent about a third of global trade.
On the other hand, the US dollar index maintained levels close to its highest value in over a week, increasing the cost of purchasing gold for traders using other currencies.
Silver recorded a slight decrease of 0.1% to reach $38.12 per ounce, while platinum rose by 0.4% to $1395.75. Conversely, palladium declined by 0.7% to $1237.88.
