July 23 – Gold prices edged lower on Wednesday as investor appetite for risk improved following a trade agreement between the U.S. and Japan, while a stronger dollar and rising U.S. Treasury yields further weighed on bullion.
Spot gold dipped 0.2% to $3,423.08 per ounce by 0804 GMT, retreating after briefly touching its highest level since June 16. U.S. gold futures also declined by 0.2%, settling at $3,435.90.
The market responded to U.S. President Donald Trump’s announcement of a trade pact with Japan that reduces tariffs on automotive imports and shields Tokyo from additional levies. In return, Japan committed to a $550 billion investment and loan package aimed at the U.S.
“Gold is pulling back slightly after the trade deal reduced safe-haven demand. The dollar’s mild rebound is also adding pressure,” said Han Tan, chief market analyst at Nemo.Money. “After a strong three-day rally, it’s natural for gold bulls to pause.”
The U.S. dollar index rose 0.1% against major peers, while 10-year Treasury yields rebounded from two-week lows. A stronger dollar makes gold more expensive for foreign buyers, and higher yields reduce the appeal of non-interest-bearing assets like gold.
Meanwhile, U.S. and Chinese officials are expected to meet in Stockholm next week to discuss extending the deadline for a broader trade deal, according to Treasury Secretary Scott Bessent.
All eyes now turn to the U.S. Federal Reserve’s upcoming policy meeting on July 29-30. While markets largely expect rates to remain unchanged, analysts believe a strong dovish stance could push gold toward a fresh record high.
“Only a major dovish surprise from next week’s FOMC meeting could revive gold’s upward momentum,” Tan added.
In other precious metals, spot silver declined 0.3% to $39.18 per ounce, platinum climbed 0.6% to $1,450.48, and palladium also gained 0.6% to $1,282.76.