Gold Suffers Rare Three-Day Loss — Are Tariffs Becoming a Reality?

TradingKey - As political tensions within the U.S. ease and global uncertainties begin to settle, gold prices have tumbled in a rare three-day losing streak. At the time of writing, gold has fallen to $3,334 per ounce.

Thursday’s economic data showed that U.S. initial jobless claims declined for the sixth consecutive week — the longest streak of declines since 2022 — reinforcing expectations of economic resilience. Markets have since scaled back bets on Federal Reserve rate cuts, now pricing in fewer than two cuts this year, with the first likely delayed until October. A tighter interest rate outlook has weakened demand for non-yielding assets like gold, contributing to its downward momentum.

Key Developments:

Trump’s Tariff Updates

Europe: Reports indicate President Trump stated there is a “50% chance” of reaching a deal with the EU, with the final U.S. tariff on European goods potentially set at 15%.

Asia: The U.S. will reduce tariffs on Japan from 25% to 15%; tariffs on the Philippines and Indonesia will be set at 19%. These three nations — along with Cambodia and Vietnam — are the only countries among the original 150 targeted to have reached tariff agreements before Trump’s August 1 deadline.

Trump Pushes Powell on Rate

CutsAfter months of public pressure, Trump visited the Federal Reserve on July 24 (U.S. Eastern Time) and met with Chair Jerome Powell. He stated he has no intention of firing Powell and claimed “clear progress” has been made in pushing the Fed toward rate cuts.

Middle East Developments

In a statement released late Thursday, Hamas said it reaffirmed its desire to continue negotiations with Israel to help overcome obstacles and reach a permanent ceasefire. However, reports suggest Hamas’s latest proposal showed a “lack of genuine willingness to cease hostilities,” leading to a breakdown in talks.

Russia-Ukraine Conflict

The third round of peace talks between Russia and Ukraine was held on July 23 around 7:00 p.m. local time at the Çırağan Palace in Istanbul, Turkey. The meeting lasted less than an hour. The head of the Ukrainian delegation later stated that Kyiv is ready for a ceasefire.