Gold (XAU/USD) prices held largely steady in Asian trade on Wednesday, with investors weighing mixed signals from ongoing US trade developments and bracing for the Federal Reserve’s policy decision later in the day.
Spot gold was trading at $3,331.04 an ounce by 09:10 GMT, stuck in a tight range after modest gains in the previous session. While safe-haven interest remains supported by uncertainty around the August 1 US tariff deadline, recent progress on trade deals has dampened broader demand for gold.
The US–EU framework agreement reached over the weekend imposed a reduced 15% tariff on most European goods, avoiding the previously threatened 30% rate. While this deal has eased fears of an all-out trade war, it also strengthened the US dollar.
The dollar has stayed firm after sharp early-week gains, reflecting improved risk sentiment and dollar-friendly trade outcomes. Analysts noted that tariff-driven trade agreements tend to benefit the dollar while reducing gold’s appeal in times of improving market confidence.
Even so, caution continues to hang over markets as the August 1 deadline approaches, keeping a floor under gold for now.
Investors are now firmly focused on the Federal Reserve’s policy announcement later today. The central bank is expected to hold rates at 4.25%–4.50%, but traders will closely monitor the accompanying statement for any hints of policy shifts later this year.
Markets are also awaiting key US economic data, including PCE inflation and monthly employment figures, which could influence both interest rate expectations and the outlook for gold.