Global Gold Prices Decline Amid Trade Calm and Lower Rate Cut Expectations

Global gold prices witnessed a notable decline at the start of the week, driven by signs of easing trade tensions and an announcement by the U.S. administration to extend tariff deadlines. These developments reduced investor demand for gold, traditionally seen as a safe-haven asset in times of uncertainty.
As part of ongoing international trade negotiations, the U.S. signaled that it is nearing the finalization of several trade agreements. President Donald Trump announced that the implementation of higher tariffs would be postponed until August 1, with official notifications to affected countries to be issued by July 9. This three-week delay offered some relief to global markets and prompted investors to shift away from gold.gold had dropped by 0.6%, trading at $3,314.21 per ounce, while U.S. gold futures also declined by 0.6% to $3,322, according to Reuters data.
The short-term extension of the tariff deadline helped ease immediate concerns, leading to a daily drop in gold demand. This move reflects a cautiously optimistic sentiment in the markets, with capital flows shifting toward higher-risk assets.In parallel, expectations of aggressive monetary easing by the U.S. Federal Reserve have moderated. Futures markets now suggest just two quarter-point rate cuts by the end of the year, as inflation fears linked to tariffs have subsided.Performance of Other Precious Metals:The decline in gold prices was mirrored across other key precious metals:Silver fell by 0.8% to $36.81 per ouncePlatinum dropped by 0.8% to $1,380.55 per ouncePalladium declined by 1% to $1,123.31 per ounce
The global pullback in gold prices underscores how sensitive financial markets remain to trade developments and macroeconomic policy signals. While the temporary tariff extension has brought a wave of short-term optimism, the long-term outlook for gold will remain closely tied to upcoming trade decisions and the pace of monetary policy shifts—especially from the U.S. Federal Reserve.