Gold Prices Slip As Safe Haven Demand Wanes On Trump Trade-Talk Breakthroughs

Gold prices slipped on Friday as the bullion lost some of its safe-haven appeal, following the Trump administration's advancement of trade talks with key partners, including the European Union, and an increase in investor appetite for riskier assets.

A U.S.-European Union trade deal is likely on the horizon, as the two sides have reportedly made progress toward an agreement that would allow the EU to accept a 15% tariff on most products. The U.S. is the largest destination for EU exports and the second-largest partner for the import of goods.

Spot gold prices fell 0.4% to $3,356.13 per ounce, while U.S. gold futures also slipped 0.4% at 2.25 a.m. ET. Retail sentiment on Stocktwits SPDR Gold Shares ETF (GLD) was in the ‘bullish’ territory at the time of writing.

Gold prices have rallied this year as Trump’s initial salvo of tariffs threatened to derail global economic growth. However, the Trump administration has struck several trade deals in the past few weeks and is reportedly on course to reach other trade agreements ahead of an Aug. 1 deadline.

Wall Street’s major indexes touched fresh record-highs on Thursday, also bolstered by strong corporate earnings.

The dollar index, which compares the greenback to a basket of currencies, also rose on Friday as strong U.S. data allayed some fears about the world’s largest economy. On Thursday, official data showed that U.S. jobless claims unexpectedly fell last week, signaling a robust job market. A stronger U.S. currency makes dollar-priced bullion more expensive for foreign investors.

Investor focus will now shift to a basket of U.S. data next week, including inflation, jobs, and GDP, which will determine the Federal Reserve’s stance for benchmark interest rates. According to CME Group’s FedWatch tool, most traders expected the U.S. central bank to lower rates in September.

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