Gold eased to $3,340 on Thursday, slipping less than 1% as demand for safe-haven assets waned amid growing optimism over a pending trade agreement between the United States and the United Kingdom. According to sources familiar with the matter, President Donald Trump is expected to announce the deal at a scheduled press conference at 14:00 GMT in Washington.
While the UK government has confirmed the announcement to outlets including Bloomberg and the Financial Times, the specific terms of the deal have yet to be disclosed.
Fed Holds Rates Steady, Warns of Future Headwinds
The Federal Reserve’s policy decision late Wednesday added further context to the gold market’s movements. As expected, the Fed left interest rates unchanged at 4.25%–4.50%. Fed Chair Jerome Powell acknowledged the current strength in the US economy but warned that the effects of elevated tariffs and persistent uncertainty could begin to weigh on growth in the months ahead.
Despite trade tensions, Powell indicated the Fed is not inclined to reduce rates in the near term, echoing market expectations for any policy shift to be delayed until summer, according to the CME FedWatch Tool.
Markets React to Trade Deal Headlines
Midway through the European session, President Trump took to his Truth Social platform to call the upcoming trade deal announcement “full and comprehensive.” More information is expected during the official press conference.
Prior to the trade news, gold had staged a recovery in the Asian session after falling in response to the Fed’s cautious stance. Bloomberg reports that gold demand remains robust, with hedge funds like Waratah Capital Advisors Ltd. continuing to increase exposure to the metal as a hedge amid ongoing global trade tensions.
Trump’s post—“MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!”—fueled market excitement, though analysts caution that the deal’s scope may be limited or symbolic rather than transformative.
Technical Outlook: Resistance and Support Levels in Focus
From a technical standpoint, gold remains in a consolidation phase. The price encountered resistance near $3,413, marked as the R1 level, before retreating. If the trade deal proves to be superficial or is delayed, a reversal could propel gold back toward that resistance area, with a further target near R2 at $3,462.
On the downside, gold is currently testing initial support at $3,338 (S1). Below that, S2 sits at $3,311, though it holds limited technical weight. A more substantial support zone lies near $3,245, a level that has previously served as a key pivot and may act as a floor if bearish pressure intensifies.
Conclusion
While optimism over a US-UK trade agreement has momentarily softened gold prices, the broader macroeconomic backdrop—including Fed policy caution and enduring trade uncertainty—continues to support long-term bullish sentiment. Unless the upcoming deal reveals significantly more substance than expected, gold’s recent retreat is likely a temporary pause rather than a trend reversal.
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