Gold prices fluctuate due to trade negotiations and tariff uncertainty, but stabilize despite geopolitical risks.

Gold prices fluctuated on Friday as trade negotiations continued, with U.S. Treasury Secretary hinting at possible extensions beyond 9 July. Progress on trade deals reduced safe-haven demand for gold, but uncertainty over tariff deadlines kept bullish momentum. President Trump warned of higher tariffs for nations missing the deadline, supporting gold’s resilience. As the Wednesday deadline approaches, gold remains stable despite geopolitical uncertainties.

The euro remained steady on Friday, supported by the passing of Trump’s tax-cut bill and focus on securing trade agreements. Rising tariff risks and fiscal concerns boosted the euro, while stronger U.S. jobs data eased recession fears. Trump confirmed reciprocal tariffs, giving countries more time to negotiate terms. The ECB may not resist euro appreciation, allowing currency markets to remain active.

The Japanese yen weakened on Monday as weaker-than-expected wage data reduced expectations for BoJ rate hikes. Nominal wages in May fell short of forecasts, while real wages declined sharply, impacting consumer purchasing power. Prime Minister Ishiba’s firm stance in trade negotiations added pressure on the yen against the USD. Market volatility is expected when the tariff pause ends, with potential impacts on the yen.

Read more at Investing.com: Gold Prices Under Pressure as Tariff Talks Offset Geopolitical Risks