Gold prices edged lower in early Asian trading on Wednesday, trimming recent gains as a fresh trade deal between the U.S. and Japan lifted investor sentiment and reduced demand for safe-haven assets. The agreement, which imposes a 15% tariff on Japanese exports—less than initially feared—boosted Japanese equities and added pressure on bullion.
Despite the decline, gold remains up 2.2% for the week, supported by lingering uncertainty over U.S. trade policy and cautious positioning ahead of the Federal Reserve’s upcoming policy decision. Spot gold slipped 0.3% to $3,421.15 per ounce, while gold futures fell to $3,434.75 per ounce.
While geopolitical tensions and mixed policy signals from Washington continue to underpin precious metal demand, market focus has now shifted to the Fed. Expectations are broadly aligned around the central bank keeping interest rates steady, which may keep gold in a consolidation phase near-term.