{"id":17629,"date":"2025-07-24T11:50:06","date_gmt":"2025-07-24T11:50:06","guid":{"rendered":"https:\/\/www.vtmarkets.com\/in\/?p=17629"},"modified":"2025-07-24T11:50:11","modified_gmt":"2025-07-24T11:50:11","slug":"gold-stalls-as-japan-deal-triggers-risk-rally","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-mena\/analysis\/gold-stalls-as-japan-deal-triggers-risk-rally\/","title":{"rendered":"Gold Stalls as Japan Deal Triggers Risk Rally"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2025\/02\/gold9-1024x559.png\" alt=\"\" class=\"wp-image-16982\" \/><\/figure>\n\n\n\n<p><strong>Key points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Spot gold drops 0.2% to $3,423.08 after Trump\u2019s $550B trade pact with Japan lifts risk appetite<\/li>\n\n\n\n<li>Rising dollar and 10Y yields pressure bullion, capping its three-day winning streak<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<p>Gold prices edged lower on Wednesday, cooling off after a sharp three-day rally as markets digested the latest U.S.-Japan trade agreement. Spot gold declined 0.2% to $3,423.08 per ounce, while U.S. gold futures also fell 0.2% to $3,435.90.<\/p>\n\n\n\n<p>The move came after prices touched $3,438.93, the highest level since 16 June, before losing steam.<\/p>\n\n\n\n<p>The deal, announced by President Trump,&nbsp;<a href=\"https:\/\/t.co\/PcdQTO3COg\" target=\"_blank\" rel=\"noreferrer noopener\">promises a reduced tariff<\/a>&nbsp;of 15% on Japanese auto imports, down from the previously threatened 25%.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.vtmarkets.com\/?sid=1&amp;bsa_pro_id=5&amp;bsa_pro_url=1\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a>In exchange, Japan will direct a $550 billion investment and loan package into the U.S., boosting investor sentiment and sparking a rotation out of safe haven assets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Technical Analysis<\/h2>\n\n\n\n<p>Gold surged on Monday evening, with prices climbing from a low of $3383.36 to a sharp peak of $3438.93 before momentum tapered. Since then, price has settled into a narrow band just above the 3420 mark, with volatility drying up.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2025\/07\/image-24.jpeg\" alt=\"\" class=\"wp-image-26993\" \/><\/figure>\n\n\n\n<p>The MACD histogram shows waning bullish momentum, while the lines remain flat near the zero axis, suggesting indecision.<\/p>\n\n\n\n<p>The 15-minute moving averages are now flattened and converging\u2014pointing to a consolidation phase. Traders should watch for a clean breakout above $3440 or a breakdown below $3416 for fresh directional cues, especially as markets digest recent geopolitical headlines and US macro prints.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Dollar And Yields Add Pressure<\/h2>\n\n\n\n<p>The U.S. dollar index (USDX) rose 0.1%, adding to gold\u2019s woes by increasing the relative cost for non-dollar buyers.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.vtmarkets.com\/?sid=1&amp;bsa_pro_id=18&amp;bsa_pro_url=1\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a>Meanwhile, the\u00a0<a href=\"https:\/\/t.co\/oMJozcuORd\" target=\"_blank\" rel=\"noreferrer noopener\">10-year U.S. Treasury yield rebounded<\/a>\u00a0from near two-week lows, further undercutting gold by raising the opportunity cost of holding non-yielding metal.<\/p>\n\n\n\n<p>With U.S. and Chinese officials&nbsp;<a href=\"https:\/\/t.co\/jiFhehroMU\" target=\"_blank\" rel=\"noreferrer noopener\">set to meet in Stockholm<\/a>&nbsp;next week and the Fed\u2019s policy meeting on July 29\u201330, traders will watch closely for signals on rate outlook and geopolitical direction.<\/p>\n\n\n\n<p>At present, markets expect rates to remain on hold, though sticky inflation or fresh data could shake assumptions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Cautious Forecast<\/h2>\n\n\n\n<p>Gold\u2019s short-term rally appears to have stalled at $3,438, with broader risk sentiment improving and safe haven flows fading. If yields and the dollar continue to strengthen, gold may struggle to reclaim momentum.<\/p>\n\n\n\n<p>A period of consolidation between $3,416 and $3,438 is likely ahead of the Fed\u2019s decision. Traders should remain vigilant, especially if geopolitical talks or macro data introduce fresh volatility.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/in\/trade-now\/\" title=\"\">Create your live VT Markets account\u00a0and\u00a0start trading\u00a0now.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key points Gold prices edged lower on Wednesday, cooling off after a sharp three-day rally as markets digested the latest U.S.-Japan trade agreement. Spot gold declined 0.2% to $3,423.08 per ounce, while U.S. gold futures also fell 0.2% to $3,435.90. The move came after prices touched $3,438.93, the highest level since 16 June, before losing <a href=\"https:\/\/www.vtmarkets.com\/en-mena\/analysis\/gold-stalls-as-japan-deal-triggers-risk-rally\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-17629","post","type-post","status-publish","format-standard","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/posts\/17629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/comments?post=17629"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/posts\/17629\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/media?parent=17629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/categories?post=17629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-mena\/wp-json\/wp\/v2\/tags?post=17629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}