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Investing.com-- Gold prices steadied Wednesday as investors weighed persistent U.S. trade uncertainty and awaited the Federal Reserve’s policy decision later in the day.
At 06:30 ET (10:30 GMT), Spot Gold edged up 0.1% to $3,329.27 an ounce, while Gold Futures also ticked 0.1% higher to $3,384.40/oz.
Bullion saw modest gains in the previous session, supported by trade uncertainty ahead of the August 1 tariff deadline set by President Donald Trump.
However, the commodity has fallen around 2% in the past week as recent U.S. trade progress has eroded demand for haven assets.
Gold under pressure from U.S. trade deal progress
A U.S.–EU framework trade agreement announced last weekend imposed a reduced 15% tariff on most European goods, down from the initially threatened 30%.
The recent progress in U.S. trade deals with the European Union eased some fears of an escalated trade war, but it bolstered the U.S. dollar. This, in turn, weighed on gold by making it more costly for overseas buyers.
The US Dollar Index remained strong on Wednesday after sharp gains at the start of the week.
That said, markets remain on edge ahead of the August 1 tariff deadline. This looming timeline is limiting market optimism and keeping safe-haven demand for gold mildly supported despite trade progress.
Analysts pointed out that tariff-driven trade deals are typically dollar-friendly and lower the allure of gold amid rising risk appetite.
Metal markets await Fed decision
Investors are also focused on the conclusion of the Federal Reserve’s policy meeting later in the session, which is expected to result in rates remainiing within the 4.25%–4.50% range.
Traders will scrutinise the accompanying commentary for hints on potential rate adjustments later this year, as some investors expect a cut in September
Market participants also await a flurry of U.S. economic data due later this week, including he flash reading of second quarter GDP later in the session, and the widely-watched monthly jobs report on Friday.
Platinum Futures gained 0.5% to $1,427.20/oz, while Silver Futures declined 0.3% to $38.17 per ounce.
Benchmark Copper Futures on the London Metal Exchange fell 0.6% to $9,749.10 a ton, while U.S. Copper Futures were down 0.2% at $5.6150 a pound.
U.S. copper prices saw sharp declines this week as Chile’s finance minister said the country will push for an exemption for a planned US tariff on the metal.
Ayushman Ojha contributed to this article