Gold declined to around $3,340 per ounce on Thursday, giving back some of the gains from the previous session as optimism over trade developments reduced the metal’s safe-haven appeal.
President Trump announced that the US had reached a trade agreement with Vietnam, under which some of the harsh tariffs on Vietnamese products would be lifted in exchange for greater access for American goods to the Vietnamese market.
The deal also raised hopes for additional bilateral trade agreements in the pipeline.
Meanwhile, losses were limited by ongoing weakness in the US dollar amid fiscal concerns and expectations of further monetary easing by the Federal Reserve.
ADP data showed private-sector payrolls unexpectedly fell in June, marking the first decline in more than two years and raising fresh concerns over labor market strength, which supports the case for lenient monetary policy.
Elsewhere, Iran halted cooperation with the UN nuclear watchdog, adding modest geopolitical risk.
Source: Gold Falls on Trade Optimism
