Gold Extends Decline Amid Easing Trade Tensions

Gold prices fell to around $3,360 per ounce on Friday, marking a third consecutive session of losses as concerns over tariffs continued to ease, denting the precious metal’s appeal. Investors continue to monitor progress in trade talks, with the US and EU reportedly nearing an agreement, shortly after Washington announced a separate deal with Japan. On the economic front, US jobless claims fell for the sixth straight week—the longest stretch of declines since 2022—underscoring the resilience of the labor market. This reinforced views that the Federal Reserve will hold rates steady at its meeting next week, but markets are still pricing in a potential rate cut in September. Meanwhile, renewed tensions between President Trump and Fed Chair Powell also drew attention, as they clashed over the central bank’s renovation costs. Trump repeated his call for lower rates but said the renovation issues weren’t enough to justify firing Powell. Still, gold remains on track for a modest weekly gain.