Gold Falls As US Keeps Door Open For Trade Deals

(RTTNews) - Gold prices dipped on Wednesday as investors believed trade talks would end on a positive note despite the August 1 deadline closing in as US keeps the doors for negotiations still open.

Front Month Comex Gold for August delivery fell by $28.20 (or 0.85%) to $3,295.80 per troy ounce today.

Front Month Comex Silver for August delivery slumped by 53.50 cents (or 1.40%) to $37.566 per troy ounce today.

The crucial deadline for the US "reciprocal tariffs" suspension period ends the day after tomorrow.

Today, US President Donald Trump hinted at a 20% to 25% tariff (plus a penalty) on India though he added that a final deal has not yet been finalized while intense negotiations between high-level officials is underway.

After two-day talks in Sweden, China and the US have agreed to seek an extension from Trump on their mutual trade truce time period, which expires on August 12.

Canada, South Korea, and various other countries are engaged in discussions with their US counterparts to secure deals.

A flurry of US economic data released today indicated positivity in the economy.

According to ADP employment data, private businesses have added 104,000 jobs in July.

According to the US Department of Commerce, for Q2 2025, the economy grew at an annualized 3%, rebounding from a contraction in Q1.

For Q2 2025, the Core Personal Consumption Expenditures price index increased by 2.5%; PCE prices advanced by 2.1%; and consumer spending rose at an annualized 1.4%.

Month-on-Month pending home sales fell by 0.8% from May, while year-on-year, sales decreased by 2.80%.

The threat by Iran-backed Yemen's Houthi militia to attack all vessels tied with Israel passing through the Red Sea has compelled cargo ships to circumvent the Red Sea and thereby adding up transportation and insurance costs.

The Middle East situation remains tense but military-wise peaceful as the US and the West have not intervened in this emerging crisis.

Investors are awaiting the details of the US Federal Reserve's decision and the follow-up news conference by Fed Chair Jerome Powell today on monetary policy.

Economists feel that the Fed may resist growing pressure from business houses (including Trump) and keep the lending rates steady at the current benchmark of 4.25% to 4.5% in light of the decent economic data.

Analysts feel that the trajectory of gold prices could become more clear, possibly by next week.