As the US-EU tariff agreement approaches, gold is under downward pressure, while silver briefly rises

Tariff talks ease risk aversion

According to Reuters , the United States and the European Union are close to reaching a 15% tariff agreement, which the market believes will ease trade tensions and reduce global economic uncertainty, directly suppressing safe-haven demand for precious metals. Spot gold fell 1.1% to $3,394.64 per ounce on Wednesday, and the settlement price of gold futures fell 1.3% to $3,397.60 (data source: Reuters quotes on July 23).

Gold fell, while silver rose against the trend

Unlike gold, which is under pressure, silver prices surged to their highest level since September 2011 in early trading, primarily driven by expectations of stronger demand for industrial metals, before experiencing a pullback. Platinum also fell by over 1%, demonstrating a significant short-term divergence across the precious metals sector. The market is also closely watching the outlook for Federal Reserve policy. Economists warn that the Fed's independence could be threatened by political pressure, a potential risk that continues to provide some support for gold prices.

Precious metals may see a new turning point

If the US-EU tariff agreement is finally implemented, it will reduce global inflation and supply chain risks, thereby weakening the safe-haven value of gold. At the same time, silver, due to its combination of precious metal and industrial properties, may continue to benefit from new energy and manufacturing demand, showing relative strength. In the short term, market focus will shift to:

• The direction of the Federal Reserve's interest rate policy: If expectations of interest rate cuts increase, gold prices may still rebound.

• The trend of the US dollar and real interest rates: A weakening of the US dollar or a decline in real interest rates may provide temporary support for precious metals.

• Recovery of industrial demand: The industrial application demand for silver and platinum may become the core logic of their anti-falling properties.

Short-term differentiation, medium and long-term still need to be observed

For investors, gold may continue to face pressure in the short term, making it suitable to invest in batches or wait for prices to stabilize before entering the market. Silver, supported by industrial demand, is more volatile but offers periodic trading opportunities. In the long term, if geopolitical or financial risks escalate again, gold will remain a key strategic asset.

Can policy easing reverse the risk-averse logic?

The approaching US-EU tariff agreement is reshaping market expectations for risk and safe-haven assets. Gold may lose its upward momentum in the short term, but its medium- to long-term outlook depends on the evolution of Federal Reserve policy and macroeconomic risks. Silver, supported by new energy and industrial demand, may become a relative bright spot among precious metals going forward.

Want to be the first to grasp global market trends and investment opportunities? Follow us on BrokerHiveX for the latest in-depth analysis and real-time information!

Further reading

• Goldman Sachs and Bank of New York team up to launch token tied to money market funds

• Tesla offers ride-hailing service to self-driving taxi users in California

• The year of Bitcoin's rise is 2026. Has the four-year cycle ended?