Gold traded slightly higher in mid-European trading on Tuesday, July 29, after four consecutive sessions of declines. It traded at its lowest levels since July 9, with risk appetite increasing in the markets following the US-EU trade agreement amid market anticipation of the US Federal Reserve meeting and US employment figures. The yellow metal is trading up about 0.32% at $3,324 per ounce, while silver is trading at $38.6 per ounce, up 0.02%.
After markets digested the trade agreement between Washington and the European Union, attention is turning to the negotiations between Beijing and Washington. The two sides concluded the first day of negotiations in the Swedish capital, Stockholm, yesterday, Monday, and are looking forward to extending the trade truce, which expires on August 12, for another three months. Fidelity International Multi-Asset Investment Fund Manager Ian Samson indicated in an interview that the company remains optimistic about the yellow metal and expects gold prices to reach $4,000 by the end of next year, with interest rates lowered, the dollar declining, and central banks continuing to hold onto gold.

Markets are awaiting the US Federal Reserve’s meeting, which begins today and will be announced tomorrow, Wednesday. The bank is expected to keep interest rates unchanged at 4.5% for the fifth consecutive meeting this year, after cutting them by a quarter of a basis point in December of last year.

Markets are also awaiting the US Department of Labor’s July Nonfarm Payrolls (NFP) data, due at the end of trading on Friday, August 1. Market expectations indicate that between 110,000 and 100,000 jobs will be added in July, compared to 147,000 jobs added by the US economy in June. The unemployment rate is expected to rise to 4.2% from 4.1%, and wages will rise by 0.3% month-on-month and 3.8% year-on-year. Platinum, in turn, is trading at $1,381, down about 0.58%, while palladium is down about 0.79%, trading at $1,236.