Gold (XAU/USD) prices edged lower on Thursday as signs of progress on multiple trade fronts reduced haven demand.
Spot gold was trading at $3,362 an ounce by 12:45 GMT, pulling back after hitting $3,438 on Tuesday. The retreat follows a sharp rally earlier in the week that saw the metal touch a one-month high.
The shift in tone came after the US announced a trade agreement with Japan and signalled potential deals with both the European Union and India.
Japan is set to face a 15% US tariff, significantly lower than the 25% rate initially proposed by President Trump. Reports also pointed to a similar arrangement being considered with the EU, while talks with India appear to be nearing completion.
The news offered some relief to investors who had been bracing for steeper tariff shocks. The improvement in trade sentiment, coupled with strong tech earnings out of the US, lifted broader market confidence and sapped demand for defensive assets.
Despite the pullback, gold remains within the range it has held since June, and is still trading well above recent lows. Investors appear reluctant to fully unwind positions until agreements are finalised, with lingering caution keeping the floor under prices for now.
While the mood has improved, gold’s safe-haven appeal remains intact amid ongoing geopolitical uncertainty and unresolved Federal Reserve tensions.