Gold Slips With Focus on US Trade Talk Progress After Japan Deal

Gold edged lower after a three-day rally as US President Donald Trump announced a highly-anticipated trade deal with Japan, signaling progress on fraught talks ahead of his Aug. 1 tariff deadline, Bloomberg reported.

Bullion fell as much as 0.3% to trade near $3,420 an ounce after Trump said he would impose 15% levies on goods from Japan. The agreement, which will also see the key American ally invest $550 billion in the US, eased some concerns about the president’s sprawling tariff war, impacting demand for haven assets such as gold.

With several countries still racing to secure trade deals ahead of Aug. 1, investors continue to seek clarity on progress with China in particular. US Treasury Secretary Scott Bessent said on Tuesday he will meet his Chinese counterparts in Stockholm next week for their third round of talks aimed at extending a tariff truce and widening the discussions.

Gold has climbed about a third this year, as uncertainty around Trump’s aggressive attempts to reshape global trade and conflicts in Ukraine and the Middle East sparked flight to havens. The precious metal has consolidated within a tight range over the past few months, though this week’s gains of about 2.5% have pushed prices to trade about $80 short of April’s record high above $3,500 an ounce.

Spot gold was down 0.3% to $3,422.09 an ounce at 10:41 a.m. in Singapore. The Bloomberg Dollar Spot Index was up 0.1%, after a loss of 0.4% in the previous session. Silver, platinum and palladium fell.

Elsewhere, traders were also monitoring the future of the Federal Reserve after Bessent offered support for Fed Chair Jerome Powell, who has found himself in the line of Trump’s fire for holding interest rates steady while waiting to see if duties impact inflation. Treasury yields fell on Tuesday following Bessent’s comments, which helped soothe investor worries about the central bank’s independence. Lower yields tend to benefit the precious metal, as it doesn’t pay interest.

Meanwhile, with few major US economic data releases due in the coming days and Fed speakers in a blackout period ahead of next week’s policy meeting, traders will be watching for a dovish signal from officials when they gather in Washington from July 29-30.