ECB rate decision due later in the day
Risk sentiment lifted by progress in trade talks
Dollar at more than two-week low
Trump to visit Fed on Thursday
(Updates for Asia market close)
July 24 (Reuters) – Gold prices extended losses on Thursday, as easing trade tensions dampened demand for safe-haven assets, overshadowing support from a weaker dollar.
Spot gold was down 0.3% at $3,375.76 per ounce, as of 0644 GMT, after dropping 1.3% in the previous session. U.S. gold futures were down 0.5% at $3,381.20.
“Yesterday, gold prices were seen building up for the next bullish run until the news came out on trade front, triggering some profit-taking,” said Brian Lan, managing director at GoldSilver Central, Singapore.
“We’ve seen the dollar has also weakened quite a bit, and of course, this also supports gold. So, I think this is a small retracement at this moment. We are, in fact, still quite bullish on gold.”
Signalling progress on the tariff front, U.S. President Donald Trump struck a trade deal with Japan that lowers tariffs on auto imports.
The European Union and the United States are nearing an agreement that would impose 15% tariffs on European imports, while waiving duties on some items, according to officials from the European Commission.
Risk sentiment in the wider financial markets rose on the back of progress in trade talks and hopes that more deals could be in the offering.
Offering support to gold, the U.S. dollar index fell to a more than two-week low, making greenback-priced bullion less expensive for other currency holders.
Investors were also looking forward to a rate decision from the European Central Bank due later in the day.
The U.S. weekly jobless claims numbers due on Thursday and S&P Global’s flash PMI data will be in focus to gauge economic health ahead of the Federal Reserve’s monetary policy decision next week.
Trump, a critic of Federal Reserve Chair Jerome Powell, will visit the U.S. central bank later in the day, the White House said.
Spot silver slipped 0.4% to $39.13 per ounce, platinum eased 0.3% to $1,407.90 and palladium dropped 1% to $1,265.44.
(Reporting by Brijesh Patel in Bengaluru; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)
