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Gold loses lustre as US-Japan deal curbs safe-haven demand - YAHOO FINANCE
Gold (GC=F)
Gold prices were lower in early European trading, as safe-haven demand took a hit after US president Donald Trump announced a trade deal with Japan ahead of an impending tariff deadline.
Gold futures were down 0.3% to $3,434.50 per ounce, at the time of writing, while spot gold was muted at $3,422.89 per ounce.
Trump struck a trade deal with Japan that lowers tariffs on car imports and saves Tokyo from punishing new levies on other goods in exchange for a $550bn (£406.5bn) package of US-bound investment and loans. The deal includes reduced 15% tariffs for car exports to the US, down from the previous 25%.
"If further trade deals are signed ahead of 1 August, this could further boost general risk appetite and reduce the demand for gold," CM Trade chief market analyst Tim Waterer said.
"But if the USD remains pressured this will keep a return to $3,500 a viable near-term prospect for the precious metal."
