Gold dips lower as market hopes build on US-UK trade deal announcement

The dollar is gaining some slight ground but gold is among the more noticeable movers to start the session. The precious metal is now down 0.7% on the day and touching a low of $3,336. That is running close to the 100-hour moving average (red line) of $3,330. Keep above and the near-term bias stays more bullish but break below that and the bias will turn more neutral instead.

The latest headlines comes from the UK, with media reports confirming that Trump is to announce a “heads of terms” agreement i.e. framework of a deal. The announcement will take place at 1400 GMT.

Even with this though, there will be more negotiations to follow. But after a bit of a setback with Japan, this at least will help set the tone for what may come next.

However, it is best to be reminded that the UK was not on the reciprocal tariffs list from the onset. This is due to the balanced nature of goods trade between the UK and the US. So, they have only been subject to the 10% blanket tariffs and steel, aluminum, auto tariffs. Is that a key factor to help with moving things along? I would argue so. So, there’s that to consider too.

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