AFFECT OF U.S.-E.U. TRADE ON GOLD

Following the recent trade agreement between the U.S. and Japan, the European Commission expressed optimism that a similar deal with the United States is within reach, despite the EU's decision to approve retaliatory tariffs on American products should negotiations break down.

Encouraging labor market figures are likely to support the Federal Reserve's decision to maintain interest rates at 4.25%-4.50% in next week’s meeting. This comes even as inflationary pressures appear to be rising, partly driven by President Donald Trump’s trade tariffs.

Trump’s unexpected visit to the Federal Reserve signaled a renewed effort to influence Chair Jerome Powell, once again urging the central bank to implement a significant rate reduction.

U.S.A. President Trump has signaled that governments of the countries offering expanding access to U.S. markets may benefit from favorable tariff arrangements, using the newly finalized Japan deal as a template for talks with the European Union.

EFFECT ON GOLD 

• Gold prices broke a four-day decline in today’s trading session as markets braced for tomorrow’s Federal Reserve meeting.
• On Wednesday, the Fed is set to convene, with policymakers widely expected to hold interest rates steady.
• Gold (XAU/USD) stabilized at about $3,321 on Tuesday, ending a four-day drop after falling to a three-week low near $3,300.