Gold and Oil Prices Decline Amid Global Trade Moves

Optimism over new trade agreements pressures gold and oil, as markets closely watch economic indicators and energy inventories.

Contents

Gold
Oil

Gold

Loses Its Shine as Trade Tensions Ease

Spot gold prices fell to around $3,375 per ounce after a 1.3% loss in the previous session, driven by decreased demand for safe-haven assets following progress in trade talks between the U.S. and its key partners, especially the European Union and Japan.
This came after reports indicated Brussels might accept 15% tariffs on most of its exports to the U.S., while Tokyo signed an investment agreement worth $550 billion, leading to a rise in U.S. Treasury yields, which weakens gold’s appeal.

Despite a further 0.3% drop on Wednesday morning to $3,378.76 per ounce, market sentiment remained cautious due to persistent threats from U.S. President Donald Trump to impose new tariffs on countries like South Korea and India, with measures expected to take effect on August 1.

On the other hand, gold has gained more than 25% since the start of the year, fueled by geopolitical uncertainty and international conflicts, although it has fluctuated in recent months after reaching a record high above $3,500 per ounce in April.

Oil

Holds Steady Awaiting Trade Talks and Inventory Data

Following four consecutive sessions of losses, oil prices stabilized as investors awaited any developments in U.S. trade negotiations.
Brent crude traded below $69 per barrel, while West Texas Intermediate (WTI) remained above $65, with markets closely monitoring U.S. inventory levels.

Data showed that U.S. crude stockpiles dropped by 3.2 million barrels last week nationwide, even as inventories at Cushing, the delivery point for WTI, rose for the third straight week. Diesel inventories, despite a recent uptick, remained at their lowest seasonal level since 1996.

Analysts warned that any market optimism may be short-lived. Vishnu Varathan, head of macroeconomics at Mizuho Bank, noted that a slight rebound in oil prices is possible given diminished pessimism around demand, but ongoing tensions and tariff risks could renew pressure on prices.

Meanwhile, investors are also watching the impact of new sanctions on Russia, particularly for importers like India, and whether Chinese imports of Russian and Iranian oil will feature in next week’s U.S. trade negotiations.

Gold and Oil Prices Decline Amid Global Trade Moves

Gold and Oil Prices Decline Amid Global Trade Moves

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