Gold prices fall to 2-week low
What's the story
Gold prices fell to a near two-week low on Monday, July 28, with spot gold down 0.1% to $3,332.18 per ounce in early Asian hours. This is its lowest level since July 17. The decline comes amid stronger risk sentiment after the US and European Union signed a new trade agreement. US gold futures also fell slightly to $3,331.60 per ounce during this period.
Indian market
Prices in India remain stable
Despite the global decline, gold prices in India remained stable. As of Monday, July 28, 24K gold was priced at ₹99,930 per 10gm. The rates for 22K and 18K gold were ₹91,600 and ₹74,950, respectively, for the same weight, according to Goodreturns. This stability comes as a contrast to the international market trends, where gold has been witnessing a downward trajectory.
Trade agreement
US-EU trade deal reduces tariffs, improves investor sentiment
The new trade agreement between the US and EU has reduced proposed import tariffs to 15%, easing fears of a potential trade war. This development has improved investor sentiment toward equities and currencies, making safe-haven assets like gold less appealing. Jigar Trivedi from Reliance Securities said, "Reduced trade tensions put gold under pressure. A weaker dollar cushioned some losses." The dollar index fell by 0.1%, which offset some of the losses in gold prices for buyers outside the US.
Future outlook
Market's focus shifts to upcoming events
The market is looking forward to a busy week ahead. Senior US and Chinese officials will meet in Stockholm on Monday to keep trade talks going. The focus will then shift to the US Federal Reserve's policy decision mid-week, with expectations that it will keep its key rate unchanged in the 4.25%-4.50% range. These developments could have a significant impact on global gold prices and market trends.