Gold slips as US-Japan trade deal boosts risk appetite and strengthens dollar.

Gold prices slipped on Wednesday after Donald Trump unveiled a trade pact with Japan, boosting investors’ willingness to take on risk. At the same time, a firmer U.S. dollar and rising Treasury yields resulted in downward pressure on bullion.

Spot gold dipped 0.1 percent to $3,428.69 an ounce by 11:47 GMT, as it retreated from an earlier session peak, the highest since June 16. U.S. gold futures eased by 0.1 percent, settling at $3,441.90.

Under the new agreement, Tokyo agreed to cut tariffs on car imports and escape additional tariffs on other exports, in return for a commitment of $550 billion in Japanese investment and loans into the United States. The deal, announced on Tuesday, helped ease concerns over global trade tensions.

“Spot gold is pairing some of its gains as the U.S.-Japan trade deal weakens demand for safe-haven assets,” said Han Tan, chief market analyst at Nemo.Money. “The slight rebound in the U.S. dollar is also weighing on bullion, though it’s only natural that gold traders pause after a three-day rally.”

The dollar index, which measures the U.S. currency against a basket of its peers, rose 0.1 percent, making gold less cheaper for holders of other currencies. Meanwhile, benchmark U.S. 10‑year Treasury yields bounced back from near the previous 2-week lows, reducing bullion’s appeal as an alternative investment.

Looking ahead, U.S. Treasury Secretary Scott Bessent said American and Chinese officials will meet in Stockholm in the coming week to discuss an extension of the deadline for their trade negotiations. In Brussels, the EU Commission reaffirmed its focus on finding an outcome in its talks with Washington.

Gold is often viewed as a hedge during periods of economic uncertainty or geopolitical strain. Its recent climb had reflected worries over a possible fracturing of global trade ties.

Silver followed gold’s lead but remained in positive territory. Spot silver was up 0.3 percent to $39.39 an ounce, marking its highest price since late September 2011. “Silver’s supply-demand fundamentals look attractive and justify higher prices,” said independent analyst Ross Norman. “Now that it is at a fresh 14‑year high, the key question is whether buyers will push it past the psychologically important $40 level.”

Other precious metals saw mixed moves. Platinum was down 0.4 percent to reach $1,436.38 an ounce, while palladium eased 0.3 percent to $1,270.93.

Oil slipped for the 4th day straight

Oil prices also slipped for a 4th straight day as traders weighed progress in U.S. tariff discussions and prepared for stockpile figures due later in the session. Brent crude hovered near $68 per barrel, having been knocked back by concerns that trade disputes could curtail fuel demand.

Alongside the Japan deal, Trump announced an agreement with the Philippines. Yet the EU has warned it will impose 30 percent tariffs on U.S. goods worth several billion dollars if it fails to reach a trade accord with Washington.

Bessent noted that next week’s discussions in Stockholm may broaden to cover issues such as China’s purchases of oil from sanctioned exporters Iran and Russia. On the domestic front, the American Petroleum Institute reported a slight drop in U.S. crude inventories last week, while distillate stocks rose modestly. The Energy Information Administration’s official information is expected on Wednesday

Oil has traded within a narrow range this month after June’s volatility, when tensions between Iran and Israel drove sharp price swings. Brent crude remains down around 8 percent so far this year, as traders worry that renewed U.S. tariffs could dampen consumption just as OPEC+ nations look to boost output.

“We are racing toward the Aug. 1 deadline for reciprocal U.S. tariffs,” said Harry Tchilinguirian, head of research at Onyx Capital Group. “With the Japan deal in place, all eyes now turn to whether Europe can strike a swift agreement or retaliate with its own measures.”

Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More