US-EU Trade Deal Boosts Gold Prices Amid Ongoing Trade Uncertainty

Gold prices steadied after the US and EU announced a tariff agreement, easing some concerns about a trade war. Bullion traded near $3,330 an ounce, weighed by uncertainty over the deal's scope and implementation. The metal has risen over 25% this year due to global trade tensions, conflicts, and haven demand. Investors await a week of pivotal data from the Federal Reserve, which may impact gold prices.

Gold prices held steady on Thursday, trading near $3,330 an ounce, after the United States and European Union announced a tentative tariff agreement. The agreement, which aims to lower tariffs on European imports and waive duties on some items, has eased some concerns about a potential trade war. However, uncertainty over the deal's scope and implementation continues to weigh on gold prices.

The metal has risen over 25% this year due to global trade tensions, conflicts, and demand for safe-haven assets. The U.S. dollar index fell to a more than two-week low, making greenback-priced bullion less expensive for other currency holders and providing support to gold prices [2].

Investors are closely watching the upcoming week of pivotal data from the Federal Reserve, which may impact gold prices. The Federal Reserve's monetary policy decision, scheduled for next week, is expected to influence interest rates and economic growth, potentially affecting the demand for gold as a safe-haven asset.

The Trump administration has been pressuring the European Union to offer significant market access to US exports to avoid a 30% tariff. The administration has emphasized that the decision to ease the tariffs ultimately rests with President Donald Trump [1]. While negotiations are ongoing, the deadline for the tariffs is set for August 1, and the administration has warned that customs officials will begin collecting duties from that date.

The European Union and the United States are nearing an agreement on a trade deal that would impose 15% tariffs on European imports, while waiving duties on some items. The deal, if finalized, could potentially lower trade tensions and provide some relief to gold prices [2].

Investors are also keeping an eye on other economic indicators, such as the U.S. weekly jobless claims numbers and S&P Global's flash PMI data, which will be released on Thursday. These data points can provide insights into the health of the economy and may influence gold prices.

In conclusion, gold prices have steadied in the wake of the EU-US tariff agreement, but uncertainty over the deal's implementation and upcoming Federal Reserve data continue to influence the metal's performance. Investors should remain vigilant and monitor the developments closely.

References:
[1] https://www.livemint.com/news/us-news/us-drops-tariff-ultimatum-ahead-of-august-1-deadline-no-extensions-no-more-grace-periods-11753624882106.html
[2] https://www.cnbc.com/2025/07/24/gold-flat-as-easing-trade-tensions-offset-support-from-weak-dollar.html