At the close of trading on 23/7, the spot price of gold fell nearly 45 USD to 3,385 USD per ounce. Earlier in the session, the price had reached its highest point since 16/6.

The market declined after Reuters, citing sources familiar with the matter, reported that the US and the European Union (EU) were nearing a trade agreement with tariffs reduced to 15%. A day earlier, the US announced an agreement with Japan to reduce reciprocal tariffs and car import taxes to 15%. This news significantly reduced the demand for safe-haven assets.

Global gold prices reversed course on 23/7 after two strong gains. Chart: Kitco

"The US has reached an agreement with Japan and is aiming for a similar outcome with the EU. This also means that Europe will not retaliate. Demand for riskier assets, such as stocks, is therefore increasing," explained Bart Melek, head of commodity strategy at TD Securities.

Gold prices tend to rise during periods of uncertainty and low-interest-rate environments. The market does not currently expect the US Federal Reserve (Fed) to cut interest rates in July. However, a Reuters poll of economists suggests that the Fed's independence is still under threat as pressure from the White House continues to mount.

In addition to gold, other precious metals also lost value on 23/7. Silver fell 0.1% to 39.2 USD per ounce, after nearing a 14-year high earlier in the session. Platinum fell 2.1% to 1,411 USD. Palladium also lost 0.2%, closing at 1,271 USD.

US stock market indices continued to rise. At the close of trading on 23/7, the Dow Jones Industrial Average (DJIA) was up more than 1%. The S&P 500 rose 0.7%, setting a new record for the 12th time this year. The Nasdaq Composite rose 0.6%, closing above 21,000 points for the first time.

Ha Thu (according to Reuters, CNBC)