WASHINGTON (dpa-AFX) - Gold prices traded below $3,400 per ounce on Thursday as the announcement of new U.S. trade deals with Japan and the Philippines sparked optimism for similar agreements with other major economies ahead of the looming tariff deadline.
Spot gold fell 0.7 percent to $3,364.24 per ounce in European trade, while U.S. gold futures for August delivery were down 0.9 percent at $3,368.12.
Risk appetite improved and demand for safe-haven assets like gold declined after reports emerged that the U.S. and EU are edging closer to a trade deal.
A possible deal would result in a broad 15 percent tariff on EU goods imported into the U.S., avoiding a harsher 30 percent levy slated to be implemented from August 1, two EU diplomats said.
U.S. Secretary of the Treasury Scott Bessent told Bloomberg Television that the talks were 'going better than they had been', and that progress was being made.
Commerce Secretary Howard Lutnick said Japan's pledge of billions in U.S. investments 'could be' a model for the EU.
Traders also await clarity on negotiations with China ahead of a meeting between U.S. Treasury Secretary Bessent and Chinese officials scheduled for next week.
Focus now shifts to the ECB rate decision later in the day, with the central bank expected to hold the deposit facility rate at 2.00 percent after cutting it by a quarter basis points each in every rate-setting session since September.
The announcement is due at 8.15 am ET. Following the governing council meeting in Frankfurt, ECB Chief Christine Lagarde holds press conference at 8.45 am ET.
The Federal Reserve (Fed) meeting is due next week, with no changes in interest rates expected.
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