Gold price falls as U.S-U.K announce trade deal; here's how much it fell and what experts are saying

Gold prices fall as Trump hints at major US-UK trade deal- Gold prices dropped on Thursday as market nerves eased following U.S. President Donald Trump’s announcement of a possible trade deal with Britain. The news pulled investors away from the safe-haven metal, which had earlier seen some gains. As of 11:57 GMT, spot gold slipped 0.7% to $3,342.22 per ounce, while U.S. gold futures fell 1.3% to $3,347.90.

Trump posted on Truth Social that he would soon hold a press conference to announce what he called a “major trade deal” with the UK. This comes alongside a report from The New York Times stating that tariffs on certain goods between the U.S. and Britain are expected to be lowered. British Prime Minister Keir Starmer is also scheduled to give an update later in the day, adding to the optimism.

Why is gold dropping despite global tensions?

Gold often benefits from uncertainty in the markets. But this time, signs of improving trade ties are shifting investor sentiment. With tensions cooling between the U.S. and Britain, the demand for gold as a protective asset has weakened slightly.

Nitesh Shah, a commodity strategist at WisdomTree, told Reuters, “As it becomes confirmed that there is some sort of trade deal in the wings, that could help to firm up the dollar a bit and take some of the steam off of gold.”

Stronger trade ties tend to boost the U.S. dollar, which usually works against gold. A firmer dollar makes gold more expensive for holders of other currencies, trimming its appeal.

Are U.S.- China trade talks affecting gold prices too?

Absolutely. Investors are closely watching an upcoming U.S.-China trade meeting in Switzerland this weekend. Any breakthrough or sign of progress could further reduce the need for gold as a hedge against geopolitical risks.

Still, uncertainty lingers. These are early talks, and no clear outcomes have been promised. Investors are keeping their options open, but for now, positive expectations are keeping gold under some pressure.

How is China’s gold import policy shaping the market?

In a move that could quietly support gold prices, China’s central bank has eased restrictions on gold imports. It’s now allowing commercial banks to use their foreign exchange reserves to buy more gold under newly raised quotas.

Two sources told Reuters this policy shift could help keep demand for physical gold strong within the world’s largest consumer market.

Han Tan, chief market analyst at Exinity Group, noted, “Such measures are likely to keep supporting bullion demand, underpinning support for spot gold prices.”

Could rising India-Pakistan tensions reverse gold’s fall?

Another factor that could swing gold back up is the rising tension in South Asia. Pakistan announced it had shot down 12 Indian drones that allegedly violated its airspace. This came just a day after India reportedly carried out strikes on multiple Pakistani targets.

Though this regional conflict hasn't directly impacted gold markets yet, it adds to the broader geopolitical risk.

Ole Hansen from Saxo Bank warned, “Rising tensions between India and Pakistan will continue to attract attention, potentially leading to an unquantifiable level of safe haven demand.”

In the past, gold has reacted to military escalations and border skirmishes. If the situation escalates further, investors might start piling back into gold.

How are other precious metals performing today?

Gold isn’t the only metal in motion. Here's how other key precious metals fared on Thursday:

• Spot silver fell slightly by 0.2% to $32.40 per ounce
  
  
• Platinum rose 0.6% to $979.91
  
  
• Palladium dropped 0.2% to $970.91
  
  

These numbers reflect how shifting global trade and geopolitical dynamics continue to affect investor behavior across the precious metals space.

What's next for gold investors?

For now, the gold market is in wait-and-watch mode. Positive trade developments could continue to pressure prices, especially if both the U.S.-UK and U.S.-China negotiations show real progress.

But underlying risks — from Middle East instability to rising tensions in Asia — remain in play. Investors will likely stay cautious, with gold ready to bounce if fear returns to the markets.

In summary, gold prices are reacting to a fast-moving global picture. Trade optimism is cooling the metal's shine for now, but geopolitical risks still keep it relevant in every investor's strategy.

FAQs:

Q1: Why are gold prices falling today?
Gold prices are down due to trade deal hopes between the U.S. and UK, easing investor fears.

Q2: How does China’s gold import policy affect the market?
China's looser import quotas may keep gold demand strong despite falling prices.